TaxGuyBill
Level 15
02-16-2024
03:06 PM
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I *THINK* the program is doing it correctly.
Depreciation recapture isn't really business income. Section 179 is limited to business income (which does include §1231 gains). See §1.179-2(c). It specifically mentioned §1231 gains, which seems to imply that §1245 recapture is not part of it.
If you RIGHT click line 11 of the 4562, the pop-up help menu says how it is calculated, and it seems to say the same thing as the Regulation that I mentioned.