Sec 179 Carryover

[Rlmea]

Can a Sch C taxpayer c/o Sec 179 depreciation to the next tax year, (sch c is not showing a loss but does not much income)? He feels he could better use the write off next year. Is it possible to use some sec 179 currently and carry over the rest to next year. I believe you can c/o if showing a loss, but unsure if showing profits.

Robin

[taxmom34]

i'm not sure but i think you can claim 179 depreciation up to the max. you don't need to take it all, you can take an amount this year and the balance is depreciated according to the class life. you just can't take the balance in the next year.

[Jiggers]

Can a Sch C taxpayer c/o Sec 179 depreciation to the next tax year, (sch c is not showing a loss but does not much income)? He feels he could better use the write off next year. Is it possible to use some sec 179 currently and carry over the rest to next year. I believe you can c/o if showing a loss, but unsure if showing profits.

Robin

You can elect any amount of Section 179 on an asset, and depreciate the balance using the appropriate class life and depreciation method.

If there is a loss on the Schedule C, and this is all the taxpayer has on his tax return, then the unused Section 179 is carried forward.

Remember that you can use W-2 wages in calculating the income limit for Section 179.

My software does a great job on that.

If the taxpayer has a profit, and doesn't want to use the Section 179 election, than he has to depreciate according the appropriate class life and depreciation method. He can't elect to use it next year.

[Rlmea]

Thank you, that is what I thought.

Robin