I have a new Sched C business, $500 income, $10k exps (equipment, training, travel, auto, home office). Can I Section 179 the equipment, or do i have to depreciate because of the business loss (the client has mostly investment and pension income)?
You cannot use Section 179 to go negetive. So, no you cannot Section 179 more than the profit before the 179.
Dusty
Based on the numbers you are presenting, there are a couple of issues before you get to the section 179 issue. First, do you have an actual business or a hobby? Second, do you have business expenses or startup costs?
Equally important, is the TP married? If yes, then the spouse's earnings(wages, etc.) are counted in the total 1040 amounts for taking the Sec 179.
.
You've received some very good advice, but not a direct answer to your question. Sec 179 is limited to earned income, which includes W-2 compensation or 1099-MISC nonemployee compensation.
Yes you are limited to sch c income, however if there is a w-2 you can also take that into consideration.
