Income Limitation Form 4562 Section 179

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Client has active income from a K-1. Client also owns a strip mall and is electing to be a real estate professional. Client is trying to carry forward $200K in equipment as section 179 to 2020 from this activity. However form 4562 will not carry forward the 179 because it adds all the income from all the activities. He will qualify if it is based on just the rental activity income

Is there a way to get the Section 179 carry forward to work without overriding the income limitation

Any help will be immensely appreciated

ProSeries Professional

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T

TaxGuyBill

@mike9 wrote:
because it adds all the income from all the activities. He will qualify if it is based on just the rental activity income

That is what it is supposed to do. The income limitation is based on the sum of ALL businesses.

As a side note, the last I checked the software did NOT add in (or subtract the loss) of a rental property because it assumes the rental does NOT rise to the level of a "Trade or Business", If it does rise to the level of a "Trade or Business", you would need to manually change (override) the income limitation to factor in the rental.

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