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Entering the Section 179 deduction for partnership Schedule K-1, box 12 in Lacerte and ProConnect

by Intuit Updated 1 year ago

Before you start

  • The section 179 expense reported to the partner on Schedule K-1, box 12 is limited to the business income limitation reported on Form 4562, Depreciation and Amortization, Line 11. The program uses this amount, along with the total cost of section 179 property placed in service during the year from other sources, to complete Part I of Form 4562, Depreciation and Amortization.
  • Part I of Form 4562 is used to figure the allowable section 179 expense deduction from all sources. Report the amount on Form 4562, Line 12, allocable to a passive activity from the partnership using the instructions for Form 8582.
  • If the amount isn't a passive activity deduction, the program reports it on Schedule E (Form 1040), line 28, column (i). However, if the box in item D is checked, report this amount following the rules for publicly traded partnerships in the Partner's Schedule K-1 instructions.

To enter the section 179 deduction in Lacerte

  1. Go to Screen 22, Other Schedule K Items.
  2. Scroll to the Deductions subsection.
  3. Enter the amounts in Section 179 deduction [A].
    • Select the input field expander icon to enter multiple items or to allocate amounts to two more states.

To enter the section 179 deduction in Proconnect

  1. Go to the Input Return tab.
  2. Select Schedule K from the left menu
  3. Select Other Schedule K items.
  4. Scroll to the Deductions subsection.
  5. Enter the amounts in Section 179 deduction [Adjust].
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