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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1561
Experience:  22 years of tax preparation experience, including individual, trust, and estate returns.
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Schedule C (Realtor - Residential/Vacant Land

Customer Question

Schedule C (Realtor - Residential/Vacant Land Sales) -- Asset Entry Worksheet (Laptop Computer): State Section 179-1 is too large.State Section 1791,288.
JA: Thanks. Can you give me any more details about your issue?
Customer: Sorry - the cost of the laptop was $1,288.
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Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
am I supposed to be doing something?
Customer: replied 1 year ago.
Do you need more information in order to answer the question?
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** I can help. Just a few questions to clarify things: What state are you in? What is the error you are getting and what software are you using?

Customer: replied 1 year ago.
Michigan.
TurboTax
Error:
Check This Entry
Schedule C (Realtor - Residential/Vacant Land Sales) -- Asset Entry Worksheet (Laptop Computer): State Section 179-1 is too large.
State Section 179
The laptop cost $1,288.
Customer: replied 1 year ago.
What is taking so long; is this a difficult question....or, are there just too many people on-line asking questions at this time of year?
Expert:  Arthur Rubin replied 1 year ago.

What state are you in?

Customer: replied 1 year ago.
13 April 2016 09:13
Michigan.
TurboTax
Error:
Check This Entry
Schedule C (Realtor - Residential/Vacant Land Sales) -- Asset Entry Worksheet (Laptop Computer): State Section 179-1 is too large.
State Section 179
The laptop cost $1,288.
Customer: replied 1 year ago.
Could someone please get back with me regarding my question? It has been over 24 hours.....thank you!
Expert:  Stephen G. replied 1 year ago.

Sorry, I just saw your question.

Do you have a loss on your Schedule C?

The Section 179 deduction for your computer can't create a loss.

Perhaps that is your problem.

Expert:  Arthur Rubin replied 1 year ago.

The error message bothers me: State Section 179-1 is too large.

Possibilities I can see:

Stephen's suggestion that you cannot use Section 179 to create a loss. (This could produce a state-only difference if other income is greater for Federal purposes than for Michigan purposes)

The property is used less than 50% in the business: Listed property used less than 50% in the business cannot have Section 179 applied, but only straight line depreciation. This might mean you need to add another tick-mark in the Michigan section of the depreciation tables to report that the same 50% requirement is met in Michigan as for Federal purposes.

I can't think of any other likely causes.