partnership shows an ordinary loss. partners want to take the extra 179 deduction on an item to carry over to off set other earned income. Software doesn't want to flow it to the K-1, but I am able to input my self. then when carried over to the individuals it is able to offset that other income. Is this allowable? Not sure why software won't put on K-1. Is it not allowable because of the ordinary loss?
-
-
A 179 deduction is limited to net income subject to SE tax. -
I thought you could net the 179 deduction against other earned income.Comment
-
You can. See TTB 9-10. Section 179 expense is passed to the partners on Schedule K-1. It depends on what is on his Form 1040.Comment
-
Sec 179 deduction rules must be met at both levels. The partnership and the individual. So, if there is a loss at the partnership level, no Sec 179 can be taken this year.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
-
OK, partnership shows a loss, plus they want to take the 179 deduction on an asset placed in service in 2013. The loss from the farm shows percentage wise on the ordinary profit/loss line. the percentage of partner shows 179 deduction on line 12. Both partners have wages that are more than the 179 deduction, then it is allowable? My software won't flow the 179 deduction to the K-1(on the partnership return), I have to manually put it in. Is it trying to tell me something? TTB 9-15 has a chart and mentions partnerships- is that saying the 179 deduction isn't allowed if the partnership ordinary income isn't enough?Comment
-
The Section 179 deduction requirements have to be met at the partnership level (i.e., no loss at the partnership level) before it can flow to the individual partners.Comment
Comment