Section 179

[spowens]

Can I use Section 179 to depreciate assets placed in service in 2023 on my 2024 tax return?

[Mike9241]

the tax return you file for calendar year 2023 is a 2023 return. Your 2024 return would be for the calendar year 2024. 

if you have qualifying assets that you put into service in 2023 you can take 179 depreciation on them (some may be subject to limitations) and you need net business income in excess of the 179 deduction. any 179 taken in excess of net business income becomes a carryforward to the 2024 return  

[spowens]

Thanks for the response.  I don’t have any net income for 2023 but I will in 2024 so do I still claim the depreciation in 2023?  Or is it allowable to wait and begin claiming it in 2024.

[Mike9241]

if the business started in 2023 and you placed the asset(s) into service in 2023 then the 179 deduction, if elected, must be taken in 2023 though it will become a carryforward to use in 2024 since you have no 2023 net business income.  if you have no business net income. in 2024 the 179 will become a carryforward to 2025 and so on.  the deduction, if elected, goes on the form or return for the business.  If this is an S-corp there must be business income both at the S-corp level and personally.