Hi,

I have a service business which is an s-corp. What I need to know is how do I determine the total fixed assets for field F on the 1120s. Most assets have been 179 expensed. Some have exceeded their depreciation life although are still in service.

Thank you and God bless you all,
Ed

“What I need to know is how do I determine the total fixed assets for field F on the 1120s. Most assets have been 179 expensed. Some have exceeded their depreciation life although are still in service.”---->Ypou need to adjust your Sch M-1 / Sch L , I guess, adjustment on 1120s Your S corp can use Sec 179 expense on its tax return, the entity must have taxable income before the 179 expense in order for the entity to pass the 179 through to the SH/Owner. If not, the 179 is treated as an M-1& L adjustment, to be utilized in a later year. The S corporation can't claimor maybe that's can't pass through Section 179 greater than the corporation's net active business income (which allows - I think - an addback of the owner's compensation deduction. And the shareholder can't claim more Section 179 than his net active business income (which includes active business income other than from the S corporation).As you can see, it's(may be) better for you to use Section 179 rather than standard deprecation methods,MACRS method . Section 179 deductions are fully deductible for AMT purposes. However, the other time it can come back and bite you is if the asset is taken out of service or used personally before it's depreciation class life and you have taken 179.The section 179 deduction election is not mandatory, it is an option. If you cannot take this deduction, you can always depreciate the property that is not eligible for a section 179 deduction. A such property is still deductible over a number of years through MACRS depreciation.