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CA S179 limitation for CA S-corp S/H of a New Hampshire S-corp

Kathleen1
Level 4

I have husband and wife California residents, each shareholders in a New Hampshire S-Corp, that took Federal S179 of $65,103 each. There is no equivalent state K-1 because it’s a New Hampshire S-corp. My software (Lacerte) is limiting the CA S179 to $25,000 total on the joint return. The remaining S179 of $105,206 for California disappears into oblivion. Is it allowable on the CA shareholders end to get a copy of the S-corporation depreciation schedule and make a California K-1 adjustment to limit the S179 for California to $25,000 and calculate additional depreciation so that all that S179/depreciation is not lost for California?

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