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Sec 179 expense is greater than K-1 Scorp income, but owners/tp have $300,000 in wages from S Corp. My understanding is that the wages can count towards the "income limitation" of Sec 179 which would allow for the total deduction of the 179. I can't figure out how to incorporate the wage amounts into ProSeries and get rid of the limitation error.
thank you!
Best Answer Click here
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I think you can just change/override the income limitation on the 4562.
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Go to the Depreciation Options worksheet - enter wages on Line 3b
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I'm changing my answer - I looked back at a 2019 return - if Shareholder compensation is entered on 1125E it will automatically be used in income limitation for Sec179
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@dkh it looks like your original answer was correct since it was accepted as the solution...
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What if you do not want to increase limitation to include owner wages. However you want to place owner salary in 1125-E. Like you said it adjusts automatically But I do not want to adjust.
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You don't want to include owner wages in income limit for Sec179. Take less Sec179...........
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Yes, I want to Take Less if this is possible
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You can't adjust the income used for the Sec179 limit but you can take less or no Sec 179
