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Discussion Forum Index --> Tax Questions --> Sec 179 S Corp, LLC - two brothers as shareholders
Tiffaney (talk|edits) said:
| 25 January 2006
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| Two brothers are equal shareholders in an S Corporation, and a LLC. Both entities have significant asset purchases in 2005. I interpret the tax law as allowing a 100000 sec 179 expense election between the two entities to the shareholders. The question has been raised by my client as to whether 200000 can be expense since their are two entities and two brothers?
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Riley2 (talk|edits) said:
| 25 January 2006
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| Yes, LLC's are exempt from the aggregation rules, and S corporations are only subject to the aggregation rules if the BIG tax under Sec. 1374 applies. Thus, the short answer to your question is that each entity is entitled to a separate Sec. 179(b)(1) limitation, and no aggregation is required.
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Tiffaney (talk|edits) said:
| 25 January 2006
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| You are saying that the two brothers each have a 100k deduction assuming all other factors are such that would allow it?
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Riley2 (talk|edits) said:
| 26 January 2006
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| The limit depends on the year involved; however, your understanding is correct.
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