yes, The deduction is based on the FMV of the contribution, the adjusted basis portion of the contribution is limited to the shareholder basis, and the appreciated difference will pass to them to use on their personal return     I am not sure how to put the contribution into Lacerte.   I am guessing in 2 places? .   One place for the basis limitation amount of adjusted basis of $80,000 and a second place so they can take the appreciated difference of $ $89,000 on their personal return.  (169,000 FMV- 80,000 Basis).   Does anyone know what screens in Lacerte I would enter this data?   

Ruling 2008-16 says the shareholder's basis is not reduced by the appreciation of the contributed capital.   The shareholder is able to take it on their personal return.   

Many thanks to the help.   Hopefully someone knows what screens to put these entries into?