I prepared corporate taxes for over 15 years, but simply never came across this before. A construction company purchased large equipment and wants to take the highest possible deduction. I claimed Section 179 of $25,000 on one tractor and $20,600 on the other. Now the amounts show on K-1 (1120S) Line 11, but when I insert the info on the 1040 K-1 worksheet, they don't show up anywhere. Where can I insert the amount to take the deduction? My fear is that it will only effect his basis in the corporate shares, when we really intend to take a deduction on the tax return.
Thank you for your assistance.