Thank you for the quick reply!
I was able to do some additional reading and was hoping you could help me understand the following paragraph.
"The Sec. 179 deduction can’t exceed the taxpayer’s aggregate net business taxable income before the Sec. 179 write-off. If you operate your business as a sole proprietorship, or as a single-member LLC treated as a sole proprietorship for tax purposes, you can count any wages that you may earn as an employee as additional business income. If you’re married and file a joint return, you can also count your spouse’s earnings from employment as well as any self-employment income that he or she may earn."
After reading this paragraph, are either or both of the following statements true?
1) If I form a single member LLC treated as a sole proprietorship, I could count the income earned from my other job (W2) as additional business income; thus allowing me to deduct the entire NOL even if the Sec. 179 deduction would otherwise exceed the income generated from the LLC alone?
and/or
2) My spouse forms the single member LLC treated as a sole proprietorship and counts my income (from W2) as additional business income; thus allowing her to deduct the entire NOL even if the Sec. 179 deduction would otherwise exceed the income generated from the LLC alone?
Thank you again for all of your help!
