Sec 179 deduction

Oct 24, 2014 1 Replies
A

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


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M

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.

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