I just did a Form 1120S and Line 21 Code V (QBI Income) does not include Section 179.  I can see this being correct as of course the entity does not know if the shareholder is going to be limited on Section 179.

But if they are able to take the Section 179, I need to make a manual adjustment here, correct? Right now, without me doing so, the QBI income and therefore deduction the taxpayer is getting is too high.

Is there a better place for me to correct this than just manually adjusting what I put in for Code V when I input the K-1.

Or is this just a loophole/gift and the Section 179 does not reduce QBI income.  I can't find any support of that though.