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?
You'll need to sign in or create an account to connect with an expert.
Does your tax return have 'earned' income on it, such as W-2s or self-employment income (usually on Schedule C)?
No, there was no earned income.
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).
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ISIPVPROJECTS
Level 1
Txmex24
Level 2
kash9
Returning Member
kash9
Returning Member
cvhp1972
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.