Answer

The total amount you can elect to deduct under section 179 is subject to a dollar limit and a business income limit.

The total cost you can deduct each year after you apply the dollar limit is limited to the taxable income from the active conduct of any trade or business during the year. Generally, you are considered to actively conduct a trade or business if you meaningfully participate in the management or operations of the trade or business.

Any cost not deductible in one year under section 179 because of this limit can be carried to the next year.

You may see more details in IRS publication 946 - http://www.irs.gov/pub/irs-pdf/p946.pdf

For section 179 qualifications - you need to use "related business income"

Distribution from C-corporation is not considered your business income - and may not be used in the section 179 limit calculations.

 

Sorry if you expected a different answer.

You may confirm the information provided by calling the IRS directly 1-800-829-1040

or Assistance for Businesses: 1-800-829-4933
Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time

 

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