Question
How do I apply basis limitations to section 179 expense in proseries?
Schedule K-1 is in the return and shows the Shareholder's portion of the section 179 expenses elected by the S-Corp. Shareholder's basis is less that their share of the 179 expense so their deduction is limited. Form 7203 in Proseries has correctly calculated the appropriate section 179 expense due to the basis limitation and the carryover for next year. The issue is this limitation and reduced section 179 doesn't seem to carryover correctly into the actual return. The software is allowing the full deduction, and outside of overriding something I haven't been able to figure out how to get the software and the 7203 to match. Any help or suggestions is appreciated. Thanks!
