bonus depreciation without taking Sec 179
Can a S Corp take the bonus depreciation if they are not taking Sec 179 dep. because main shareholder is retired & is not active & would not be able to deduct it?
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dNIrs4hnWr4kAbacfA8pyY
01/10/11 9:14am PST
Viewed by asker 01/11/11 6:14am PST
Viewed by asker 01/11/11 6:14am PST
10 Replies
ArchieLeach
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01/10/11 9:24am PST
He's not going to be able to deduct it anyway. And if I were a minority s/h, I'd be plenty POed.
Morons. I've got MORONS on my team. Nobody is going to rob us going DOWN the mountain. We have got no MONEY going DOWN the mountain. When we HAVE GOT the money, goin' back UP the mountain, THEN you can sweat.
01/10/11 12:06pm PST
Sure he will, if the business has a net profit. Separately-stated Sec 179, OTOH, gets suspended forever in the absence of active trade or business income.
01/10/11 2:05pm PST
>>>Sure he will, if the business has a net profit.<<<
Sorry, bad assumption on my part. That doesn't describe any of my clients.
01/10/11 3:44pm PST
Latest post
LOL! I've got a client in the position of "retired minority shareholder in a business in which everyone else is active," and the darn kids keep taking 179. We'd love us some bonus depreciation!
sjrcpa
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01/10/11 10:53am PST
Yes. Bonus depreciation and 179 are independent of each other. You can do 1 or both
The more I know, the more I don't know.
Accountant Man
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01/10/11 11:27am PST
One difference between the two is that §179 is limited to trade or business income while bonus depreciation has no such limit.
Still could get stuck with at-risk basis, but that's not this question.
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
01/10/11 12:13pm PST
Is their a ordering to the deduction?
For example you have to take Section 179 before you can deduct bonus depreciation?
01/10/11 1:46pm PST
Even if you do not want to take 179 due to a non-active shareholder?(kids run the business)
01/10/11 1:51pm PST
The solution
§179 comes first if you claim it. If you don't claim it, it does not come first(or even second).
