How does lacerte link S corp officers wages to basis calculation for SEC 179 deduction in Individual Module ??

[rcipullo]

I have tried to link S corp officers wages screen 10  to the K-1 screen 20.2 in order to take a section 179 deduction for an officer that has current  low basis , carryover losses and other separate carryover  items.  It doesn't work.  I believe the link is for medical insurance  only and not for the SEC 179 deduction  

I can't figure a work around that would just apply the officers wages to the section 179 amount, which I believe is the proper application. Any workaround to increase basis , on screen 20.2 is applied  to all carryovers items on the basis schedule  page 2 of form 7203. I dont think that is correct. Shouldnt it just apply to the SEC 179 deduction ?

With the new Form 7203 requirement for individuals how does one handle the application of wages to section 179 ? and properly reflect page 2 of 7203 ?    

[sjrcpa]

The basis limitation comes first. If there is not enough basis to claim the Section 179 deduction, it can't be claimed this year.

[rcipullo]

I am referring to the individual return where additional basis is provided by officer W-2 wages

( is it not?)  allowing SEC 179 to be taken. But form 7203 thakes the wages and allocates it to  suspended losses, contributions made and to SEC 179.. I believe it is suppose to be allocated just to SEC179 otherwise we would be additing wages paid to the basis schedule all the time.  

[sjrcpa]

Wages don't give basis.

Wages do count as business income for the Section 179 limitations.