Level 7

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How is Sec. 179 Recapture Handled on an 1120S 199A Statement?

Forum|Forum|13 days ago
August 27, 2026
9 replies
149 views

S Corp sold sec. 179 assets with gain from sec. 179 recapture. The recapture amount is not appearing on the 1120S 199A Statement.

Will the sec. 179 recapture gain be reported on the individual shareholder’s 1040? If so, where is the amount entered on the 1040 QBI statement? There doesn’t seem to be a line for the gain.

Thank you.

ProSeries Professional

Best answer by jenks

The ordinary gain (179 recapture) should be included in ordinary business income for the QBI statement, but not Sch K-1 line 1. I know Lacerte does this automatically. Does your ordinary income from the 1120S match what is currently on the QBI worksheet for ordinary income or is it less?

jenks

Level 3

Is it not already included in ordinary business income on the 199A statement?

D

david3Author

Level 7

No. The Sec. 179 assets sold is reported separately to the shareholders with their K-1.

sjrcpa

Level 15

I think you will need to manually add it to QBI on the 1040 if the software doesn’t.

The more I know the more I don’t know.

D

david3Author

Level 7

Instructions aren’t clear on where to enter Sec. 179 recapture gain on the QBI worksheet. Which line is the gain entered?

sjrcpa

Level 15

It’s Ordinary Income

The more I know the more I don’t know.

D

david3Author

Level 7

Thank you.

Is it added to the first line Ordinary Business Income on Statement A Information, along with the amount of Ordinary Business Income reported on Schedule K-1 line 1? Or, is it entered on the Other Income line of Statement A?

jenksAnswer

Level 3

The ordinary gain (179 recapture) should be included in ordinary business income for the QBI statement, but not Sch K-1 line 1. I know Lacerte does this automatically. Does your ordinary income from the 1120S match what is currently on the QBI worksheet for ordinary income or is it less?

D

david3Author

Level 7

ProSeries doesn’t populate anything on the QBI statement. Does Lacerte automatically combine the 179 recapture with the ordinary business income on line 1? If so, since the ordinary business income doesn’t match the ordinary business income on Sch. K-1 line 1, is a statement necessary to explain why the QBI statement ordinary business income doesn’t match the ordinary business income on Sch. K-1 line 1?

sjrcpa

Level 15

No. Nobody would read it anyway.

The more I know the more I don’t know.

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