Discussion:Section 179 Recapture
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Discussion Forum Index --> Tax Questions --> Section 179 Recapture
| 3 February 2006 | |
| S corporation disposed of property at a loss that had section 179 taken. I know that this flows through to the shareholder and is reported on his individual F 4797. Is it correct that the Section 179 deducted by the SH in the prior year is reduced by the amount of regular depreciation that would have been taken had no Sec 179 been taken; then the difference is reported as Ordinary Income on his 1040? On the 1120S, my tax program is producing a statement supporting K-1, Line 17, showing all the required info, with the loss in excess of the Sec 179 as an M-1/M-2 adjustment. Is this correct? | |
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