Scenario: A sole proprietor who is actively participating in printing business that he started in 2024 outside of his main job. During 2024 bought $65,000 worth of equipment for business. Business had $30,000 in Revenues in 2024 and $15,000 in business related expenses. Also receive W-2 with $95,000 in wages through employment at ABC company as an employee and ABC is not related to the printing business. Want to take Sec 179 on the full cost of the equipment bought in 2024, will there be income limitation on taking Sec 179 under this scenario?
Also, if there is an income limitation, will he be able to take 2024 bonus depreciation after Sec 179 and 1st year MACRS after that for Federal purposes? Will it be different for NYS purposes?
Thank you.
