Lf we have an S-Corp with an ordinary loss and sec179 current year carryover to 2019, do we subtract the 179 from the ordinary loss to increase the loss on K-1, code V?

[ajmcpa]

single activity, not SSTB.  Is ProSeries now computing correctly?

[taxiowa · Accepted solution]

No subtraction.  This is easy one.  179 is carried over at the s-corp level because of present loss so there is no chance of it being used at 1040 level.  The danger is when s-corp can still deduct but individual has it limited for a reason. Then thee is no reason to deduct it on Code V for the k1.

[ajmcpa]

Thank you for your answer.  This was my understanding until I received from Intuit Proconnect, ProSeries, July 10, 2019 email, "Critical Alert regarding QBI and Amortization for Partnerships, SCorporations & QBI and 179 Limited."  I would like to know from ProSeries if this has been corrected and we can rely on the Software or if this is still an issue.  If anyone can point me to a definitive answer by ProSeries and the regs on this it would be appreciated. Please note, other CPA's received this email alert and it stated amending returns may be needed.  I want to avoid amending by making sure I am doing this correctly, I'm using ProSeries Professional.