SEC 179 LIMITATION S CORP, BUT OWNER HAS WAGES

Forum|Forum|5 years ago
May 8, 2021
3 replies
26 views

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!

ProSeries Professional

This topic has been closed for replies.

Best answer by dkh

Go to the Depreciation Options worksheet - enter wages on Line 3b

T

TaxGuyBill

Level 15

I think you can just change/override the income limitation on the 4562.

dkhAnswer

Level 15

Go to the Depreciation Options worksheet - enter wages on Line 3b

dkh

Level 15

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

PATAX

Level 12

@dkh it looks like your original answer was correct since it was accepted as the solution...

dkh

Level 15

Yes, but I hope @mstoudt7 actually used my second answer to get the Sec179 to work properly

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