TaxGuyBill
Level 15

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.