CA - Carryover Sec 179 & Cost of Property Limitation

Technical topics regarding tax preparation.
#1
Wiles  
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CA
California C-corporation has $15,000 of Section 179 carryover from 2016 to 2017. In 2017, they purchased $250,000 of Section 179 equipment. Therefore, they are not able to claim any Section 179 on the 2017 purchases. However, I believe their $15,000 carryover should still be allowed.

Do you agree?

I am using Lacerte and cannot figure out how to make this happen. Any help?
 

#2
Wiles  
Posts:
5073
Joined:
21-Apr-2014 9:42am
Location:
CA
Never mind.

CA Form 3885, Line 11 = $0 due to CA Form 3885, Line 5. It appears the current year purchases will also limit the deductibility of the carryover from the prior year. That seems strange.
 

#3
Wiles  
Posts:
5073
Joined:
21-Apr-2014 9:42am
Location:
CA
New question -

Individual taxpayer receives a K-1 reporting $12,500 of CA Sec 179. The taxpayer also has a Sch C where they purchased >$250K of Sec 179-able assets. CA is not allowing the $12,500 from the K-1 and this is not showing as a carryover. Does it just go poof!?
 


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