Error: Qualified Section 179 real property cannot be carried over

Error message

Qualified Section 179 real property cannot be carried over to 2023 per Section 179(f)(4)(A).

Solution

Go to the asset tab that corresponds to the activity for which the Section 179 expense election was initially made (for example, the
Income and Deductions
folder).
Add a new asset.
Enter a description and a date in service corresponding to the first day of the last taxable year in 2022.
Enter a Cost/Basis equal to the amount of disallowed Section 179 expense attributable to qualified real property. NOTE: to determine the disallowed amount of Section 179 expense attributable to real property, go to the
Forms
view in UltraTax CS, then the
CO Summary
.
Select the appropriate
Method
and
Life
for the property for which the original Section 179 expense was elected, or use the
Method/Life Wizard
to select the right classification.
Don't enter any Section 179 expense.
To clear the diagnostic, access the applicable screen to reduce the amount of Section 179 carryover attributable to qualified real property from a prior year. Select the right return type to determine where the carryover amounts are entered.
Further instructions for 1120 clients
:
Go to the
Carryovers
folder and then to the
NOL
screen.
In the
Section 179 - Regular Tax
section, reduce the amount of excess Section 179 - qualified real property by the amount you entered in step 4.
Further instructions for 1040 clients
:
Go to the carryover screen for the activity and unit for which the Section 179 carryover applies. You can find this on the following screens: the
Business
folder, then the
C-3
screen; the
Rent and Royalty
folder, then the
Rent-2
screen; the
Farm
folder, then the
F-3
screen; the
Farm Rental
folder, then the
4835-2
screen; and the
1065/1120S
folder, then
K1
, then the
K1-7
screen.
On the same screen, reduce the amount of Section 179 carryover - QRP by the amount from step 4.