1st year S Corp Sect 179

Forum|Forum|2 years ago
April 14, 2024
1 reply
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First year S corp. Franchise operation with equipment purchases, franchise fees etc. Taxpayer has a rather large operating loss. Based on my reading it's likely more advantageous Sect 179 depreciation rather than bonus. The problem is I enter the 179 on the asset entry screen. the amount of 179 shows up on the asset list. However the 179 doesn't show up on the K-1, M-1 screens. It's like there is no Sect 179 yet the asset basis is reduced. What am I missing?

ProSeries Professional

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rbynaker

Level 13

Section 179 income limitation at the entity level?

Rick

abctax55

Level 15

Rick be right, I bet.

Lacerte provides 'general info' that shows the carry-over & I think it is also shown on the f 4562 (top section).

So you're likely better off with bonus, assuming the shareholder can use the loss on the F 1040 (assuming basis limitations aren't a problem..)

AND, Lacerte makes it hard to keep the balance sheet balanced - I have to override in M-1 IF you have suspended § 179. (P I T A)

HumanKind... Be Both

D

dsocpaAuthor

Level 6

Definitely a basis limitation. The bonus would create an NOL that can be carried forward and used @80%. The 179 can be carried forward and used to offset income (subj to basis limitation of course) 100% indefinitely.

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