1245 Gain (Depreciation recapture) and section 179 busienss income limitation

Forum|Forum|4 years ago
February 28, 2022
2 replies
13 views

Doesn't any 1245 gain (depreciation recapture) count towards the business income limitation for section 179 purposes? Proseries correctly does this on the partnership 1065 return, but is not including it on the partner's form 1040. It is not including the 1245 gain on the partner's business income limitation for the 1040. What am I missing here?

ProSeries Professional

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dkh

Level 15

If you think the calculation should be different, you can go to the Depreciation Option worksheet and enter an amount on Line 3b in the Federal Sec 179 Information section.

T

TaxGuyBill

Level 15

I suspect the that program doesn't know if that income from a K-1 is from a "Trade or Business" or not, so it assumes it is not. For example, ProSeries assumes that rental income does not rise to the level of a "Trade or Business" and does not include that.

I'll have to check out the directions that dkh gave. In the past, I've just done an override on line 11 of the 4562.

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