pk
Level 15
Level 15

Business & farm

Let me  say what I understand from the above ---  assuming that you are filing MFJ, the standard deduction is $24,000.  And so you are saying that your net income ( gross  income less  expenses ) before depreciation, is less than $24,000.  The way I see it is that  this net income is really not  NET income  because you have to take allowable depreciation. Even section 179 can be taken to the extent there is net positive income or you have to take normal depreciation on the asset.  The final taxable income is after all these  items -- expenses  and depreciation.   Discussion on whether  this makes your  final taxable income is premature at this point. Also note that your SECA is based on net income after all expenses ( as long as positive).

For trying out  what your tax liability may be under different scenarios   ( and under windows ),  just  try out  the  scenarios, note the results and  go back and  try with a different scenario.  I have not tried this  recently , but there used to be "what-if " feature ( if I remember correctly )  in the downloaded/ CD version.  But try  the different scenarios and see  what happens.   Note  that because  your on CD version, you have access to forms mode   ( select View, from drop down select "forms", left pane shows all the forms/worksheets  being used , click on a form and the right pane shows the form/worksheet ) you can try all kinds of scenarios -- just carefully