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How do I get depreciation to calculate correctly on Form 1065 - Depreciation calculationForm 45621065 pg 1 line 16a

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📊 Step-by-Step Guide

Step 1: Confirm where Section 179 shows on the partners’ Sch K

Use this when you need to verify the Section 179 deduction is being reported correctly on the 1065.

The depreciation is correct. On a 1065 return, the Section 179 deduction will be shown on the partners’ Sch K.

Step 2: Check the exact location on Form 1065 (Sch K)

Use this when you need to find the Section 179 amount on the return.

The amount will be shown on page 4, line 12 of the Form 1065, Sch K.

Step 3: Verify Section 179 is not deducted on Form 1065 page 1 line 16a

Use this when you are checking whether Section 179 is included in the income deduction on page 1.

The Section 179 will not be deducted from income on Form 1065, page 1, line 16a.

Step 4: Confirm how Section 179 splits among partners

Use this when you need to verify the partner-level reporting.

The amount for Section 179 will split among the partners and will be shown on their Sch K-1 line 12.

Step 5: If you have a 1065/1120S return, confirm Section 79 reporting

Use this when you are working with a 1065/1120S return and need to know where the deduction appears.

On a 1065/1120S return, Section 79 deduction from income will be shown on the partners’ or shareholder’s Form 1040 return.

Step 6: Understand what line 16a represents

Use this when you are reviewing Form 1065 page 1 line 16a.

The amount on line 16a will be for special depreciation and regular depreciation.

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