There are related questions, but haven't seen one that truly answers mine. I am a W-2 earner from a typical corporate job in telecom. My husband is a stay at home father who is now starting a new business now that the kids are older. He will not make any income this year as he is just starting it (and it's already October). He's acquiring assets, materials, etc. We happen to need a new car and he wants to purchase a truck so that he can use it for his business.
Assume:
My taxable income is $100,000
My husband creates a sole proprietorship for his business - Income year 1 is $0
Although I have a primary job where I earn income elsewhere, I also help fairly significantly with his new business. Assume we split the business 50/50. He does the labor, I do the marketing, books, etc.
We file a joint tax return with itemization
We purchase a $50,000 truck in both of our names primarily for use with his business but will also have some personal use (say, 75% business and 25% personal use). The truck does not meet the test for exceeding the $25,000 Section 179 limit because the truck bed size is less than 6 feet.
Can the $25,000 Section 179 deduction (or some portion of it) be applied against my W-2 earnings from a completely separate job even though the business to which it is being used earned $0? If only a portion, how much would it be?
Thanks!
