SEC 179 LIMITATION S CORP, BUT OWNER HAS WAGES

[mstoudt7]

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!

[TaxGuyBill]

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

[dkh · Accepted solution]

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

[dkh]

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]

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

[dkh]

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

[CCASTILLO11]

What if you do not want to increase limitation to include owner wages. However you want to place owner salary in 1125-E. Like you said it adjusts automatically But I do not want to adjust. 

[dkh]

You don't want to include owner wages in income limit for Sec179.    Take less Sec179...........

[CCASTILLO11]

Yes, I want to Take Less if this is possible 

[dkh]

You can't adjust the income used for the Sec179 limit but you can take less or no Sec 179