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

Forum|Forum|3 years ago
September 12, 2022
1 reply
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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 ?

Lacerte Tax

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sjrcpa

Level 15

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

The more I know the more I don’t know.

R

rcipulloAuthor

Level 3

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

Level 15

Wages don't give basis.

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

The more I know the more I don’t know.

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