Level 20
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Business & farm

Can U explain why it is not a good idea to not take Section 179 to offset Self Employment Wages?

 

Huh? What wages? If a sole proprietorship or single member LLC the owner of that type of business can not be an employee of that business they own. Under no circumstances will the owner of a sole proprietorship or single member LLC issue themselves any type of tax reporting document. So if the business operated at a loss for the tax year, there is no SE tax assessed since there's no taxable income to assess it on.

Maybe you have an S-Corp or C-Corp? If so, and you are an employee of that corporation (which you can be) then the corporation *will* pay the SE taxes on the wages they paid you, any way you look at it.