QBI disposal of 179 assets

My scorp client disposed of fully depreciated 179 assets. All assets are way beyond their life and they were tossed - not sold.

Lacerte is reducing the QBI by a 1231 loss based on the cost basis of the assets. So, assets were purchased for $1000, Net income is $10000 and QBI, according to Lacerte is $9000.

This doesn't seem correct to me. Am I missing something?

I do not use Lacerte but it sounds like because Sec 179 is taken at the shareholder level, the software is not factoring whether you took the Sec 179 or not. So the default must be to assume no in the QBI calculations.

In ProFx, whenever I dispose of old assets, whether fully depreciated via regular depreciation or Sec 179, I just delete them from the gain loss so they do not even appear on the tax return.

Also, on Profx , I always check the "Treat Sec 179 as Depreciation on Disposition" box. That brings the 4797 gain to page 1 of the 1120s instead of reporting on the K-1. Of course, if you do not do the shareholder returns it is probably best not to assume.

My scorp client disposed of fully depreciated 179 assets.

All assets are way beyond their life and they were tossed - not sold.

by a 1231 loss based on the cost basis of the assets.

The basis still remaining means (§1231 loss) the assets are not fully depreciated, but you state two times that they are fully depreciated. I think the §1231 loss needs to be clarified.

Proseries is doing the same calculation which doesn't seem correct as there is no1231 loss on Schedule K or k-1,as no basis remaining. The 1231 loss is appearing in 199A summary calculation. Why?

I noticed the same issue with ProSeries. To avoid the amount showing up as a loss for 199A purposes, in the disposition section of the "Asset entry worksheet" for ProSeries, just put in the date of disposition and no other information such as sales price, etc. By doing this, though, Sec. 179 recapture will not calculate. Could that be an issue due to the earlier posts on this page?