Reasons why the full section 179 expense may not be allowed in ProConnect Tax

You may see a lower section 179 deduction than you expected due to the Business Income Limitation. This is how it works:

• The total qualified section 179 cost that can be deducted is limited to your taxable income from the active conduct of a trade or business during the year. This business income limitation is calculated on Form 4562, line 11.
• If the business income isn't large enough for the full section 179 expense amount to be deducted, a section 179 carryover is calculated on line 13.
• A worksheet will generate for Form 4562, line 11, that shows the different types of income from the active conduct of a trade or business and their respective amounts. 

Related topics

• Calculating Section 179 Business Income Limitation in the Individual Module
• California (CA) Section 179 Limitations