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Category: Tax
Satisfied Customers: 12459
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a client who is a 50% partner in a partnership. On the

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I have a client who is a 50% partner in a partnership. On the originally filed partnership return the partnership took $25,000 in sect 179 deduction. The partnership has $150,000 in profit before the Sect 179 deduction. However the taxpayer put $100,000 of sect. 179 eligible assets during 2012. The original preparer did NOT take the whole amount. we now want to amend to return to take the entire $100,000 sect. 179 deduction. Can you amend a partnership return for the purpose of increasing the Sect 179 deduction?

If you can in fact amend the return then can the individual return for the partners be amended?

And does Sect 179 reduce Self employment income?


NPVAdvisor : Hi,
NPVAdvisor : You may claim Section 179 deductions up to the due date (including extensions) for filing your taxes for the tax year you are claiming the deduction. Initially you were not allowed to claim Section 179 for previous tax years - however, under Rev. Proc. 2008-54 you are now able to amend and elect Section 179 if you previously did not for tax years beginning after 2007 and through currently 2013.
NPVAdvisor : And on your second question YES, you'd actually be required because of the change in K-1s to amend
NPVAdvisor : and the answer to you last questions is ysa, for the same reason
Customer: Well in this case the taxpayer did elect sect 179. Now they want to amend the return to increase the amount of the sect 179 deduction. Just for clarification the increase in the amount of sect 179 deduction is within the amount allowed to by law.
NPVAdvisor : As the partnership is a pass through, it originates on the 1065, then flows through the K-1 ti SE and 1040
Customer: So sect 179 does reduce SE taxes?
NPVAdvisor : that's OK
NPVAdvisor : any chenge DOES require an amendment
NPVAdvisor : (sorry for the typos)
Customer: So if I file a return taking a $10,000 sect 179 deduction and I amend the return to take a $25,000 deduction this is okay?
NPVAdvisor : Yes
NPVAdvisor : Just have good documentation for why it wasn't taken before ..... incpompetent preparer will alwys fly if it's valid and you are a different preparer
NPVAdvisor : there's a three years statute of limitations for amending for refund purposes, as you probably know, so don't dally :)
Customer: Yeah Incompetent preparer is the Reason. Thanks
NPVAdvisor : YW, you should be fine here ... pretty straightforward
Customer: Have a nice day and thanks!
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Thanks Richard.

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Thanks again,