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How do I handle in Lacerte - I have a final partnership return with a section 179 carryover. I have properly disposed of the asset in the depreciation screen with no sales price since it was an abandonment of a leasehold improvement. I am thinking that the disallowed S179 should be released like a passive loss but it does not. The 4562 still reports a carryover (return is marked final).
Is there a checkbox I am missing? Trying to figure out how to handle. I did increase the basis of the property and that did work but the 4797 reporting looks forced.
Anyone?
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Why was the 179 carried over? Lack of business income? Lack of basis? Not at risk?
The more I know the more I don’t know.
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Here is the solution:
Go to Screen 22 - Other Schedule K Items. Select Section - 179 Deduction (4562) (the very last section)and go to the field "Taxable income for limitation (O)" and enter the Section 179 carryover amount. That will zero out Line 13 - Carryover of disallowed deduction to 2021 on Form 4562, without affecting the balance sheet.
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Thanks for responding.
Lack of income in 2019. 2020 is the final return.
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Hi - Yes, I have completed that step to remove the c/o from the 4562 + QBI Section 199A and the "general Info".
Thanks for your response.
