cpabsd Posted February 28, 2013 Report Share Posted February 28, 2013 Where would I find the information regarding how to treat? The system is not allowing the loss due to the Section 179 that was claimed. It is an S corp. I just want to verify the treatment is proper. I could not locate it in Pub 544. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 28, 2013 Report Share Posted February 28, 2013 If you are preparing the S corp return, the loss should be showing up on 4797. Are you preparing the personal return? The sec 179 may be suspended if the taxpayer does not have sufficient basis in the S corp. It will stay suspended until basis is restored to the point of being able to absorb the loss. Make sure to enter the basis information so the system has enough data to perform the proper calculations. Quote Link to comment Share on other sites More sharing options...
cpabsd Posted February 28, 2013 Author Report Share Posted February 28, 2013 I'm preparing the corporate return. The program is putting the loss on Schedule M-1 Line 5 and not completing the Form 4797. I'm confused and cannot find any information on this being proper treatment. It is different than prior years. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 1, 2013 Report Share Posted March 1, 2013 Sorry, it's an item that will show up on line 17d of Sch K and on the K-1 in box 17. The system should be generating a statement attached to the K-1 for the shareholder to report his or her share of the transaction on the 4797. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.