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Sec 179 deduction

Re: Sec 179 deduction

I am a share holder of a S Corp and I am told that this deduction flows thru to one's personal income tax (ie Sch E of 1040). I get a K1 every year. The Sec 179 balance is way larger that the small income of this S Corp so there is a large balance left over.

I also have other income like being a partner of a partnership which makes a profit.

Can I set off the excess Sec 179 that is not offset by the income in the S Corp against my other income?

Please let me know.

Thank you.

Ava

Reply to
Ava
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In a word, no. Sec 179 carryforward is calculated first at the S-corp level, then only the allowed amount flows to the shareholder, who applies his own Sec 179 limitation tests.

Reply to
Mark Bole

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