Bernard Fruchtman wrote:

- quote -

She did right, since she was not entitled by virtue of owning no stock.
- quote -

I don't see why not.

HOWEVER; be aware that the section 179 deduction must not
result in a loss, otherwise it is limited to enough of the
loss to zero out the corporate results on the owner's 1040.

- quote -

Since he took the 12000 on the original return, he may amend
same, given the parameters of what I just said above.

Happy New Cheer$,
Harlan Lunsford, EA n LA

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S-Corporation elects Section 179 Expense of $24,000 for
equipment placed in service in 2002. The 100% owner of the
S-Corporation whose filing status is married filing
separately reports a 179 Expense from the S-corporation of
$12,000 on his 2002 tax return. His spouse does not report a
179 Expense on her return.

Can the S-Corporation owner file an amended return to claim
an additional $12,000 in 179 Expense? If not, can his spouse
file an amended return to claim a 179 Expense of $12,000?

I am not sure how the requirement that election under 179
must be made on taxpayer's FIRST return applies.

Has this requirement been met because 179 election to
expense was made on S-corporation's first return or does it
also apply at the pass through level to prevent the
individuals from making a 179 election on an amended return.

If first return requirement does apply at pass through level
.... any ideas, suggestions how to correct situation are
appreciated

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