Section 179 deduction is not included with depreciation on Form 1065 U.S. Return of Partnership Income. Section 179 deduction is a flow-through item and is reported on Schedule K and allocated to each partner in Box 12 of their Schedule K-1 (Form 1065) Partner’s Share of Income, Deductions, Credits, etc.
The partner then reports the Section 179 deduction on their individual return. However, they may not be able to take the full deduction in the current tax year due to limitation rules.
Per IRS Instructions for Form 4562, on page 11:
A partnership (other than an electing large partnership) or S corporation does not include any section 179 expense deduction (line 12) on this line. Instead, any section 179 expense deduction is passed through separately to the partners and shareholders on the appropriate line of their Schedules K-1.
Note. Certain items, such as section 179 deduction, may affect the partner's basis. Please refer to IRS Publication 541 Partnerships starting on page 9 for more information.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.