Customer: So when I file my taxes for 2013, The 179 deduction will be on my 1040 Schedule A not in schedule C? No, Section 179 is reported on your Schedule C for the LLC.
Customer: So when I file my taxes for 2013, The 179 deduction will be on my 1040 Schedule A not in schedule C? I am just curious, I am buying this for my business activity, How can I deduct it against my personal or other income? Just want to make sure I understand it correctly. Thanks for all your help.
Since you have a Section 179 claim that can exceed the income
from that active conduct of a trade or business, you have some choices. One, claim just enough 179 and regular depreciation
to zero out your income from the LLC. Two, Section 179 expense all of it, and create a loss.
The loss, as another Expert reminded me to expand on, could be used to offset income from any other active trades or businesses (§ 1.179-2(c)(6), link at: http://www.law
.cornell.edu/cfr/text/26/1.179-2). Wages count as active conduct of a trade or business income for this purpose.
So, if your tax return
includes wages or other active conduct income, claim all the 179 you want from your LLC and use the excess to offset the wages. Without such income, or another business with income to report, the excess 179 will not be deductible
until next year.
Thanks again from Just Answer, and thanks to the other Expert for his assist. I'm PDtax.