How is the Section 179 deduction determined on next year's depreciation schedule?

How is the Section 179 deduction determined on next year's depreciation schedule?

On federal and state returns, Section 179 deductions are limited if total assets placed in service exceed a set amount. (The particular amount varies by jurisdiction and year.)

For the current year, the program calculates all applicable limitations, and shows the limited deduction on the current year depreciation schedule.

The next year's depreciation schedule is an estimated projection.

Since the total number of assets placed in service next year is not yet available, the program does not attempt to calculate Section 179 limitations on next year's depreciation schedule. The full elected amount is shown for each asset, even if the total elected amount exceeds the maximum ever allowable for that jurisdiction.

The accuracy of the estimated projection can be improved by using the "state if different" Section 179 elected amount for each asset placed in service "next year" to avoid electing more total Section 179 expense than is anticipated that state will allow.