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posted Oct 6, 2022 1:05:23 PM

S-Corp + Sole Proprietor & Section 179

I am a 50% shareholder in an S-Corp that is going to take a significant loss in 2022 ($150k)

 

During 2022 I also started a Sole Proprietorship which will also show a loss for 2022. I purchased a vehicle for this business (pickup that meets 179 spec's and will be used 75% for biz).

 

What is the best way of minimizing my tax liability?

0 2 413
2 Replies
Level 15
Oct 6, 2022 1:58:44 PM

@Rick19744 

Level 13
Oct 6, 2022 2:51:43 PM

This question is too broad with almost no facts.

  • Section 179 is limited to business income.  Since it appears you have no business income, you will not benefit from any Section 179 in 2022.
  • If the business income limitation precludes you from benefiting from Section 179, any unused amount will be carried over.
  • You then need to project what 2023 will be like to determine if the carry over can be used then.  If not, then you need to project 2024.
  • Depending on how savvy you are with numbers, you may want to do a time value of money analysis; comparing having a carry over of Section 179, determining what year you believe it will be utilized vs just taking normal depreciation.