My section 179 depreciation on form 4562 line 12 isn't being carried down to line 22.

[cpavla123]

My section 179 depreciation on form 4562 line 12 isn't being carried down to line 22 and onto my 1120-S line 14.  I tried to override line 22 on form 4562 and line 14 on my 1120-s but I couldn't.  The only way I could get the depreciation recorded on my 1120-s was to enter it in as a special bonus depreciation instead of section 179 depreciation.  Is that OK or how do I get form 4562 and 1120-S corrected? 

[KrisD15]

Section 179 may only be used if there is sufficient income, Bonus Depreciation, on the other hand, can result in a loss. 

[cpavla123]

Thanks for such a fast response.  The only thing is that my income is higher than the 179 adjustment.  Does it make a difference because this is a s corp and the 179 deduction doesn't show up on the 1120-s but only on the schedule k-1s for the shareholders?  

[Mike9241 · Accepted solution]

for an S-corp line 14 is not where 179 is reported. it flows to your k-1 on line 11. that's because any 179 limitation is computed at the taxpayer level, not at the pass-through entity level.

[cpavla123]

Thanks -- that makes sense now.