topic Re: Section 179 Deduction in Deductions & credits

Section 179 Deduction

JRS49 — Wed, 11 Feb 2026 10:36:23 GMT

TurboTax tells me that my section 179 deduction is limited to zero. I do not understand why. I have s-corp k1s that provide the deduction, and I have sufficient basis in my s-corp stock. Why is my deduction limited to zero?

Re: Section 179 Deduction

AmeliesUncle — Tue, 03 Sep 2024 19:02:09 GMT

Does your tax return have 'earned' income on it, such as W-2s or self-employment income (usually on Schedule C)?

Re: Section 179 Deduction

JRS49 — Tue, 03 Sep 2024 19:37:48 GMT

No, there was no earned income.

Re: Section 179 Deduction

AmeliesUncle — Tue, 03 Sep 2024 19:44:54 GMT

Section 179 is limited to the amount of your earned income. It will carry forward to future years for whenever you do have earned income.

As a side note, make sure you are familiar with the requirement that the corporation to be paying you "compensation" that will be on a W-2 (and all of the work and cost that is related to being on payroll).