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There seems to be some common knowledge at my firm that I cannot personally find any basis for. For anyone who works with section 179 and the carryovers due to an income limitation:
Can the carryover be deducted as soon as the company has income, assuming it is within the 179 limitation for that tax year?
Example:
A partnership purchases a piece of equipment of $500,000 in 2013 and elects to expense all $500,000 with section 179. They only have $250,000 of income and therefore a carryover of $250,000. In 2014, the partnership does not place any new assets into service, and they have $500,000 of income. Do they get to take the $250,000 carryover as a deduction in 2014?
Florida CPA!
Took final exam 2/25/15.
Sent in Application 3/12/15.
Issued License 3/20/15.
Used CPA Excel solely for all exams.
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