Drake -sec 179 on 1065 to a trust

[gman]

Partnership elects to take a sec 179 and has 4 partners, one is a trust. Should the k-1 for the Trust show the
section179 on line 12. My previous software would not allow the sec 179 on the k-1 because the trust cannot take
it, but Drake is putting it there, is that correct?

[Koss]

Section 179

I won't speculate as to why your previous software would not allow it.

In this context, the trust may be permitted to take the deduction.

The instructions for Form 4562 say that a trust is not permitted to make an election to expense depreciable property under Section 179.

But on your fact pattern, it is not the trust that is making the election. Rather, it is the partnership that is making the election.

BMK

[gman]

trust

So if the k-1 shows a sec 179 for the trust, can the trust use it?

[taxxcpa]

Beats me, but maybe you should post this question on the Drake forum.

[John of PA]

Yes the trust can use it, as long as the K-1 is not from a 1041 Trust. In this case it is from a 1065 so the Partnership can pass through a 179 deduction to a trust interest, a 1041 trust cannot elect or pass through a 179 deduction.