Discussion:1065 K-1 179 Deduction
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Discussion Forum Index --> Basic Tax Questions --> 1065 K-1 179 Deduction
Discussion Forum Index --> Tax Questions --> 1065 K-1 179 Deduction
| 21 July 2008 | |
| Just wanted to confirm the following:
1065 LLC Non passive general partner It appears that on the individual partners return. The self employment income is being reduced by the 179 deduction on the K-1. I remember reading somewhere that self employment income cannot be reduced by the 179 deduction expense on an individual's Sch. E. I've looked for literature on the issue with no luck. Can anyone confirm this? Thank you. | |
| 21 July 2008 | |
| no, yes: no. No meaning incorrect, not 'no you can't'; rather: no: yes you can. and yes meaning yes someone can, not no someone can't or you are correct, when in reality you are really not correct. the last no is self-explanatory and stands on its own. Last meaning final one in the answer, not the previous one mentioned last or the last one, mentioned previously. | |
Death&Taxes (talk|edits) said: | 21 July 2008 |
| You have it backwards: you must reduce the SE Income on the individual return, not the 1065. All you have to do is think about it: this is a pass-through item and can be affected by other limitations on the individual return (e.g., taxpayer might have other 179 deductions on a Sch C or from another 1065/1120S) | |
Death&Taxes (talk|edits) said: | 21 July 2008 |
| The question certainly wasn't; I am only guessing what Len was implying. | |
| 21 July 2008 | |
| Thank you both... That definitely cleared things up. I have confirmed that the 179 expense was not taken on the 1065 and the amount was split among all the partners equally. The 179 expenses will be taken on each individual's Sch E. subject to the limitations and circumstances each particular member is subject to on their personal returns.
Thanks again. | |
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