1065 179

[JON]

What is the loss limitation at the 1065 level??? If I max 179 would just increase loss. If limited at 1065 level does it carryforward from there?? Does it pass to the partners-all realtors who got 1099'd for there commisioned income and have basis, but does 179 get limited at the partnership level-or at the partner level...

[OldJack]

Both... limited at the partnership level and again at the partner level. Carryforward is at both levels on form 4562 first at the partnership level and whatever is pass through is limited again with any carryforward at the partner level.

Example: §179 elected is $50,000 but partnership income is only $10,000, therefore partnership has carryover of $40,000 and passes $10,000 to 2 partners, $5,000 each. 2 Partners each have only $2,000 business income so carryforward for each partner is $3,000.