Claiming Section 179 on an amended form 1120S filed after the original extended due date

Forum|Forum|3 years ago
October 5, 2022
1 reply
30 views

I have a client that needs to have an amended 1120s prepared due to claiming the ERC for the 2021 tax year. The original return was filed prior to the original due date of March 15, 2022. It would be beneficial to claim Section 179 on some assets to help offset the increase in income created the ERC. I am finding various conflicting resources that support both sides of the issue. The instructions for form 4562 indicate that the section 179 election can be claimed on "an amended return filed within the time prescribed by law for the applicable tax year". Does this mean by the original due date plus extensions (9/15/22) or does this mean by the three-year time limit to file an amended corporate return. Any assistance would be appreciated. Thanks.

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Terry53029

Intuit Community Champion

this is from 26 CRF 1.179-5. Here is the link: https://www.law.cornell.edu/cfr/text/26/1.179-5

§ 1.179-5 Time and manner of making election.

(a) Election. A separate election must be made for each taxable year in which a section 179 expense deduction is claimed with respect to section 179 property. The election under section 179 and § 1.179-1 to claim a section 179 expense deduction for section 179 property shall be made on the taxpayer's first income tax return for the taxable year to which the election applies (whether or not the return is timely) or on an amended return filed within the time prescribed by law (including extensions) for filing the return for such taxable year. The election shall be made by showing as a separate item on the taxpayer's income tax return the following items:

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HankAuthor

Level 3

So it appears that the amended return needed to be filed by the September 15, 2022 due date in order to claim the Section 179. Thank you for your assistance.

dkh

Level 15

I have amended individual returns within the 3 year time frame and changed Sec179 depreciation.

A taxpayer may make, revoke, or change an election without IRS consent on an amended return per code sec 179(c)(2); Reg 1.179-5(c); Rev Proc 2017-33

Does this apply to S Corporations - I don't know Just giving you information that may help lead you to the answer you need.

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