Question
Depreciation deductions on Form 1120S
Hello everyone,
I have about $25k in section 179 depreciation that was reported on Form 4562, and was carried to Line 14, of Form 1120S (1st page). I found an article that says depreciation expenses should not be deducted by the S Corporation, instead, it should be reported on the shareholders Schedule K-1, line 11, is this true?
If yes, then why ProConnect allowed this deduction, and what do I need to do to remove the amount from line 14, and how to post it on line 11 of schedule K-1, and do I need to do any reconciliation on section K, or M1-M2 of form 1120S?
Thanks
