The Section 179 Deduction cannot create a loss for a business. Any excess Sec. 179 Deduction is carried over to the next year and is subject to the Sec. 179 Business Income Limitations for that particular year. You would calculate both the Sec. 179 Deduction and/or Carryover amount on Form 4562, Depreciation and Amortization. Note that a combination of Sec. 179 Deduction and depreciation or Bonus depreciation could create a loss for a business.
