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DanielleCPA
DanielleCPA, CPA
Category: Financial Software
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Experience:  Certified Quickbooks ProAdvisor & Small Business Accountant
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Hello, I am using Turbo Tax for a 2011 business return. I

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Hello, I am using Turbo Tax for a 2011 business return. I think there is a bug in TT for Fed Section 179 carried over to California form 3885A. Using rounded figures, can someone confirm the information below for my 3885A Worksheet?

Line1: Max dollar amt for California $25,000
Line2: Total cost of section 179 property placed in svc: $50,000 (from 4562)
Line3: Threshold before limitation
Line4: Reduction in limitation (I have none, this is a first year biz)
Line5: Dollar limitation for California $25,000
Line6: Business Activity
b-cost c-elected cost
2011 Med Duty Truck $20,000 $20,000
2010 Med Duty Truck $20,000 $0 ($20,000 CA depreciated)
2010 Stakebed Truck $15,000 $4,500 ($10,500 CA depreciated)
(totals from Line 6 Form 4562 fed)
Line7: Listed property Sec 179: $500 (from line 26&27 Fed)
Line8: Total elected cost of Sec 179: $25,000
Line9: Tentative deduction $25,000
Line10: Carryover allowed zero
Line11: Enter smaller of biz income or line5: $25,000
Line12: Section 179 ded for Calif line9&10: $25,000

Summary, I am getting $24,500 & $500 (listed property) section 179 for the State return and $30,500 of non-used California Section 179 is to be depreciated?

Thanks!!
Submitted: 1 year ago.
Category: Financial Software
Expert:  DanielleCPA replied 1 year ago.
Welcome and thanks for your question!

It appears that there is an error in your numbers somewhere - e.g. you state there was $50,000 in property placed in service but the assets you list total $55,000. You also list $24,500 + $500 + $30,500 which equals $55,500. What should the total assets be?
Customer: replied 1 year ago.

Oh boy..haha...I rechecked my figures, I did make a mistake hopefully this makes more sense.


 


Purchased veh #1 $20k, veh #2 $20k, veh #3 $15k


 


I have new (used equip) 2011 vehicle purchases of $55,000.


I am claiming $55,000* Section 179 on my Federal.


*$20k + $20k + $15k = $55,000


 


I have $500 in Section 179 for a listed vehicle (personal & business)


 


I am claiming $25,000** (the limit) Section 179 on my State


**$20k + 0 + $4,500k = $24,500 PLUS the $500 above for listed


vehicle.


 


Therefore, for the State I will be taking $25k in Section 179......


I will depreciate vehicle #2 for $20 (no section 179 already taken) and


depreciate vehicle #3 for $10,500 ($4,500 section 179 already taken).


 


I hope that makes sense...I will come back online tomorrow...thank you!!!


 


 


Expert:  DanielleCPA replied 1 year ago.
You're welcome.

The new numbers that you have posted make more sense.

One thing that still looks off to me - depreciate vehicle #3 for $10,000 not $10,500. You have already taken $5,000 section 179 on that asset- $500 + $4,500.

Otherwise, the information that you posted above looks accurate to me. Please let me know if you how this works out once you come back tomorrow.
DanielleCPA, CPA
Satisfied Customers: 727
Experience: Certified Quickbooks ProAdvisor & Small Business Accountant
DanielleCPA and other Financial Software Specialists are ready to help you
Customer: replied 1 year ago.

thank you so much...looking at figures all day and it's all becoming a blur, thanks for the clarification, I appreciate so much. Wonderful service.

Expert:  DanielleCPA replied 1 year ago.
You're welcome! I'm so glad that I could be of assistance to you.

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DanielleCPA
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Certified Quickbooks ProAdvisor & Small Business Accountant