Discussion:Section 179 question
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Discussion Forum Index --> Tax Questions --> Section 179 question
| 13 March 2007 | |
| Is it allowed to only take a partial section 179 expense on a heavy truck, and allow the remainder to be depreciated in the current year? (I know unused section 179 can be carried forward, but the S Corp client doesn't want to do it that way.)
Ex. 16,325 Truck placed in service 2006. Elect 4,000 section 179 for year 2006. Leaves 12,325 Depreciable basis. Calculates 2,465 Regular depreciation expense for 2006. Sec 179 and regular depreciation combined (6465.00)get Net Income to essentially Zero. | |
| 13 March 2007 | |
| JR1 - Am I remembering correctly that you can utilize the 179 up to the maximum amounts but can not cause net income to be negative? | |
Msmith7305 (talk|edits) said: | 14 March 2007 |
| Don't forget, however, that you compute your net income without the 179 deduction and you get to add back the wages paid to shareholder employees. | |
| 14 March 2007 | |
| 179 can go negative on sch c and offset other earned income. | |
| March 14, 2007 | |
| Yes, but it has to get out of the corp return in this case, so taxable income on the S limits, or should...maybe the W2's to shareholders get included in that... | |
| 14 March 2007 | |
| jr1 I should have known you would have mentioned it. I read the post too quickly and didn't see that he specified s corp.
I agree with you. | |
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