ProSeries for Minnesota Section 179

[Bees Knees]

I just noticed that ProSeries for Minnesota returns is automatically adding back 80% of any Section 179 deduction taken on the federal. You have to go to the M1M worksheet for Section 179 and manually enter the reduced limitations for MN so that it will allow the full amount of Section 179 for MN.

I had to go back and re-check every return I've done this year to make sure I didn't miss anyone.

[Chief]

You have company

and it's a good thing you caught it. Hope it didn't produce too many 1040X returns for you. All software is subject to human error but hopefully not too many or too often. Are you going to send a bill to your software producers?

[Beth]

MN 179 may be correct as is

Hate to bear bad news, but the software I believe is correct. Law change for 2006.

See this link on the MN revenue site. http://www.taxes.state.mn.us/individ...add_back.shtml

[Bees Knees]

Hate to bear bad news, but the software I believe is correct. Law change for 2006.

I'm talking about clients that do not exceed the old limits. MN did not go for the federal extension of the $100,000 Section 179 limit. For MN purposes, the limit goes back to $25,000. Any Section 179 expense in excess of $25,000 for federal purposes is an add back on the MN return. ProSeries for MN automatically adds back 80% of ALL the 179 taken on the federal, including the first $25,000. You have to go to the worksheet and type in the $25,000 / $200,000 limits to get it to calculate the correct MN Section 179 deduction allowed.

No, I don't have to amend any MN returns. Apparently, I haven't done any businesses taking Section 179 yet this season. My business clients all seem to come in at the last minute for some reason...Oh joy....