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Business & farm
Section 179 *CAN* create a Schedule C loss as long as there are Wages for it to offset.
However, in many cases that may not be a good idea. While the loss would save you income taxes this year, if you use regular depreciation, it shifts the depreciation deduction to future years. Assuming your business will be profitable, that depreciation deduction in future years would reduce both income tax AND self employment tax.
However, in many cases that may not be a good idea. While the loss would save you income taxes this year, if you use regular depreciation, it shifts the depreciation deduction to future years. Assuming your business will be profitable, that depreciation deduction in future years would reduce both income tax AND self employment tax.
‎June 3, 2019
11:45 AM