Support CenterSection 179 deductions not limited
This is by design. According to the IRS instructions for line 11 of Form 4562:
Individuals
Enter the smaller of line 5 or the total taxable income from any trade or business you actively conducted, computed without regard to any section 179 expense deduction, the deduction for one-half of self-employment taxes under section 164(f), or any net operating loss deduction. Also include all wages, salaries, tips, and other compensation you earned as an employee (from Form 1040, line 7). Do not reduce this amount by unreimbursed employee business expenses. If you are married filing a joint return, combine the total taxable incomes for you and your spouse.
Based on this, you should include income from all businesses and employers for the taxpayer and spouse in each taxpayer's income for the limitation.
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