I have a question about using a creative strategy to maximize my section 179 deduction
. I currently have an S-Corporation that provide audio-visual equipment rentals for business meetings and events. Year to date, I have spent approximately $200,000 on equipment that would be eligible for Sec 179 deduction. I would like to use the deduction to shelter another $600,000 in taxes
. Here is how I am proposing to do it.
I would like to purchase another $300,000 in equipment for use for our core business. There is also a supplier of our company that can use a piece of equipment that carries a $300,000 purchase price.
I would like to establish a new C-Corporation (this year) that would purchase and lease out the $300K in equipment to my S-corporation, and the $300k piece of equipment for the supplier. Since this new C-corp would have no income I couldn't write off the deduction this year, but I could roll over the deduction to next year when I assumedly will have the income to write it off.
I would like to know if this plan sounds feasible, and if there are any limitations to it that I'm not forseeing. I will absolutely pay a premium for a thoughtful knowledgable answer.