Form 4562, line 11

I have two sources of "Business Income":

1. S Corp business income through a Form K-1

2. Schedule C profit or loss from a consulting business

The K-1 has generated a Sec 179 deduction; the Schedule C business has not

TurboTax's form 4562 keeps reflecting my Schedule C profit/loss on line 11 of Form 4562 (Business Income limitation), but the Sec 179 deduction is coming from the S Corp K-1. This does not seem correct to me. To be an "apples to apples" comparison is seems the adjusted business income from the K-1 should be on line 11 of Form 4562, not my Schedule C profit/loss.

Please advise. Thanks.

101

Expert Alumni

Mar 16, 2020 9:45:46 AM

The 179 depreciation should be reported on line 11 of the K-1S. From there it should flow to Schedule E, p. 2, and not Form 4562.

Check to see that you did not enter 179 anywhere else in the interview. Then delete the 4562 and let it repopulate.

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Form 4562, line 11