Taxpayer has NOL carryover from 05 and 179 deduction carryover also. Farmer sold several cows and created 4797 income and Sch D income. My program is using that income to put the 179 deduction against. Is this correct. It makes us use up this deduction against Sch D taxable income (5%), which we really don't want. When I did by hand, I only used Sch C, F and wages - might have been doing wrong. Then when I go to the NOL page, program is putting the Sch d amount, which is profit from sale of cows, on the line that says non business capital gains. I have put in the program that these gains are from Sch F. Should they be included on that line? I don't like to waste my deducts. I have thought about amending 05 so I don't have the 179 carryover ( since I don't need in 06) and just set up the assets depreciating.
The way it looks, I'm just throwing away my 179 deduction when I already have a NOL and low taxable income. Hard to tell the future, especially in farming. Any comments or help would be appreciated
The way it looks, I'm just throwing away my 179 deduction when I already have a NOL and low taxable income. Hard to tell the future, especially in farming. Any comments or help would be appreciated