if not a passive activity - as previously stated, you cannot defer using 179 c/o or current year addition if you have basis to deduct it. you need to complete form 7203 s-corp basis, form 6198 -at risk and Turbotax at-risk limitation and allocation worksheet
here's are example
basis boy 38
current year loss -40
179 c/o -2
ordinary loss allowed 40/42*38 =36.19
179 allowed 2/42*38=1.81
