@djb77 wrote:
"you don't specify the type of entity the new business will be"
Same as the old one, LLC with S-Corp election
"W-2 income is considered business income for the 179 deduction"
Even if the W2 income has nothing to do with the business? The person that earned the W2 wages is involved in the new business, is this what you mean?
Because it is in an entity taxed as a corporation, Section 179 is first limited to the corporate profit (including any of the corporate wages paid to you/the officers of the corporation). So it sounds like Section 179 would not work for you, unless you want it to carry over to the next year.
However, Bonus Depreciation may be a good option if you are looking to claim a loss and you have enough "Basis" in the LLC/Corporation to allow the loss.
