Section 179 allocation by partnership with a trust partner
Lacertehow can a partnership allocate Section 179 deduction when there is a partner who's a trust? Is that portion of 179 just gone forever or does it redistributed to other partner?
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03/15/11 5:03pm PDT
Viewed by asker 03/15/11 5:16pm PDT
Viewed by asker 03/15/11 5:16pm PDT
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Jay in Georgia
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PhoebeRoberts
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03/15/11 5:07pm PDT
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03/15/11 5:16pm PDT
Thank you PhoebeRoberts for your link. However, how can Reg 1.179-1(f)(3) be applied in the practical world? Do we have to cut out that portion of the Section 179 that is supposed to be allocated to the trust; then depreciate and allocate it separately to the trust partners? What about in S corp then? There is no specific allocation in S corp.
03/15/11 5:38pm PDT
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Yes, you take that piece of the asset and depreciate it separately. Same thing for an S-corp, using the K-1 overrides.
In the real world, you do it by not taking Sec 179 if you've got a trust as a member / partner / shareholder.
