ProConnect HelpIntuit HelpIntuit

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

SOLVEDby Intuit9Updated March 21, 2023

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. 

taxable-business-income-limitation-section-179-proconnect-tax.jpeg

 

Refer to the Instructions for Form 4562 for more information about the business income limitation.

Related topics

Was this helpful?

You must sign in to vote, reply, or post
ProConnect Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads