Intuit HelpIntuit
Entering the Section 179 deduction for partnership Schedule K-1, box 12 in Lacerte and ProConnect Tax
by Intuit• Updated 3 months ago
For more Schedule K-1 resources, check out our Tax topics page for Schedule K-1 where you'll find answers to the most commonly asked questions.
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
- Go to Screen 22, Other Schedule K Items.
- Scroll to the Deductions subsection.
- 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
- Go to the Input Return tab.
- Select Schedule K from the left menu
- Select Other Schedule K items.
- Scroll to the Deductions subsection.
- Enter the amounts in Section 179 deduction [Adjust].
Sign in now for personalized help
Ask questions, get answers, and join our large community of Intuit Accountants users.
More like this
- "Section 179 on multiple activities being limited" error message on Individual returnby Intuit•21• Updated October 10, 2024
- Common questions about K-1 Calculations in Lacerteby Intuit• Updated 2 weeks ago
- Entering partnership Schedule K/K-1 - Other deductions and Other income (loss) in ProConnectby Intuit•3• Updated February 15, 2024
- Entering section 179 carryovers from a prior year in ProSeriesby Intuit•11• Updated October 10, 2024