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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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C Corp fiscal year-end is 09/30/08. The bought $424,584 of

Resolved Question:

C Corp fiscal year-end is 09/30/08. The bought $424,584 of equipment and claimed $125,000 section 179. In 2008, my Sole proprietorship bought $66,000 of equipment. Does the C corp drive my limitation. Can I claim full section 179 on my 2008 individual return? I had posted this question earlier but just realized that I left off contact and billing info.
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.

C Corp and your personal tax return are two separate entities. The C Corp expenses do not affect the limits on your personal tax return.

 

You can claim the full sec 179 expense on your personal tax return if you meet the other requirements for the deduction.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

 

Customer: replied 7 years ago.
I own 100% of C corp so C corp and myself appear to be members of controlled group.
Expert:  RD replied 7 years ago.

But C Corp is a separate entity. Controlled group will apply to to Corporations.

 

If this would have been a S Corp(a pass thru entity) than you would be subject to an overall limit.

 

See link below-describing similar situation...

http://goliath.ecnext.com/coms2/gi_0199-3491952/S-Corporations-CGES-and-Sec.html-page.html

 

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

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