Earned Income Calculation

[austin3515]

Anyone know how to to treat a "743(b)" election?  It's something like depreciation.  If anyone can point me to something on point I would appreciate.  Trying to see if I treat it like section 179.

[Bird]

Never heard of it before this and quick research indicates it is some kind of basis adjustment.  I'd say that it should not be part of earned income; unfortunately, I can't say whether it is something that should be adjusted for (if already in the number you have) or ignored (if not in the number you have).