Poll

[Black Bart]

Did you know (before today) that W-2 wages qualified as income from a trade or business for the purpose of utilizing the Sec. 179 deduction?

[JoshinNC]

Yes!

I actually did, only because I have had clients with negative income from a sch. C business who also worked a W-2 job (or had a spouse who did) and were able to use the net of the loss with the W-2 to exponentially increase their loss and create near zero total tax liability.

[Snagglefoof]

Did Not Know

...and as a matter of fact, never heard of such a thing.

Does that mean that a bricklayer who loses $20,000 on a Schedule C, but has a
wife who makes $90,000 as a real estate agent, can qualify to deduct as much as
$70,000 as s.179 deduction?

If so, this one got me stone cold. You should write a "tax tip of the day" and have it syndicated!!

Snag (no matter what the username says)

[veritas]

Another twist

Did you also know you can use shareholder wages added back to net income or loss for an S-Corp for the Sec 179 limitation? In other words if you have an Scorp with a loss which precludes passing through the Sec 179, you may add back shareholder wages to allow the sec 179 to pass through.

[Safire]

Hey! We are a pretty smart bunch.

[Jan]

Sec. 179

Yes, use to fill the form manually, had to read the instruction, you'll be surprise what you learn when you have to read the instruction.

My software adds the wages to line 11 on form 4562, I know some software (like Drake) does not add the wages, you have to add it manually.

[Lion]

Stumbled onto correct answer

I stumbled onto this answer the first year I worked for Block back in 1997 and was doing my own tax return with a Schedule C. Thought 179 couldn't take C into a loss, but needed more depreciation than MACRS. So, I decided to use 179, expecting the unallowed excess to carry over to the next year. When I saw no carryover and realized I was deducting more on C than my C income, I asked the other preparers. When they explained that my husband's W-2 income on our joint return allowed me to take all the 179, I looked it up in all the research books around. I was very happy that night/morning in the early hours of 15 April.

[Black Bart]

No Fair

Oh alright, Jack: So everybody (20 to 1) here does know about that dang thang. Still, I maintain that it's 'cause this here bunch of taxers are smarter'n the average crew of bean-counters. But, I still bet that if you asked people at seminars you'd find a bunch that don't know.

I don't know who that lone naysayer was (it wasn't me), but could be he's a civilian (non-tax prepper). NOTE TO THAT "NO" VOTER: Whatever you do, don't divorce that $90K per year realtor!

Now you've got me in trouble with some folks (e.g. -- JG), so I herewith resolve to stop arguing with you. You'd make a pretty good defense lawyer anyway -- even though you say you're not defending that wayward CPA back there, you coulda fooled me (he did good work on Point A, Point B, etc. -- the client's a dope/deadbeat, etc., etc.). I haven't used his defense ("Just because") since I was six years old, but you managed to make a plus out of it.

Y'all (you and Veritas) goin' on a campin' trip?

[OldJack]

Ahhhh shucks Black Bart.... go ahead and vote no... you know you want to.

[S T]

Poll

Bart,

We are going to make you the "Official" at posting "Polls" You are doing a great job, and the postings after the voting, really are noteworthy.

Sandy

[Black Bart]

Thanx Sandy

for the kind words, but, in the future, I must be more careful and actually read those torturous posts to avoid a verbal lynch mob. The price of inattentiveness around this bunch of pros is steep and some...ahem...folks would gladly furnish the rope and pay all expenses.

Well, anyway; I was saved by the Bee, so all's well that ends well.

On to bigger and better things to gauge the mettle of this mob.

[Black Bart]

P. S. to whoever just voted and

made it 21 to one plus all other potential balloteers: Please stop voting -- go away -- enough, already. I yield! Besides, you're gonna give Jack a brain aneurysym; his head's already swelling like a helium balloon.

[Black Bart]

Note to the bricklayer:

I don't know who that lone naysayer was (it wasn't me), but could be he's a civilian (non-tax prepper). NOTE TO THAT "NO" VOTER: Whatever you do, don't divorce that $90K per year realtor!

Just a suggestion, but -- assuming you stay married -- you could further improve your situation by retiring; thus saving $20,000 a year (to say nothing of the labor).