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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 ?
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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.
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Wages don't give basis.
Wages do count as business income for the Section 179 limitations.
Ex-AllStar