Discussion:Is the use of the 179 deduction an election
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Discussion Forum Index --> Tax Questions --> Is the use of the 179 deduction an election
| 17 October 2006 | |
| Is the use of the 179 deduction an election, that is, if I do not want to use the election made at the corp level in the case of a Sub S corp, can I 'suspend' the 'expensing' and use it when it does the most good?
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| 12 November 2006 | |
| Sec. 179(a). Reg. 1.179-4(e). Reg. 1.179-4T. The sum of these is that 179 is allowed in the year in which the property was purchased and placed in service. | |
Death&Taxes (talk|edits) said: | 12 November 2006 |
| Solomon is right on the money, but there is one qualifier. If the S Corp shows little income and the shareholder has little or no salary, the 179 deduction in excess of salary plus income will be carried over. This might help in a formative year. e.g., S Corp has small loss and no salary was taken.....any 179 deduction will not flow to the shareholder on the K-1 form. | |
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