section 179 depreciation (the election to expense qualifying items in the year placed into service - the year the business begins operating) is limited to business income before the deduction. on the other hand maybe most or all of the equipment qualifies for 168(k) bonus depreciation deduction (you can elect to use 50% or 100% bonus) - 100% would allow the full deduction for the cost in the first year of operation and is not limited to business income.
you business gets reported on your 1040 Schedule C so your business income for 2019 would only cover November through December 31, 2019. any income after that date would be on the 2020 return.
section 179 not used, is carried over to the following year.
since you are starting a new business, start up cost are subject to section 195. if they don't exceed $50,000 up to $5,000 can be deducted the first year
The term “start-up expenditure” means any amount—
(A)paid or incurred in connection with—
(i)investigating the creation or acquisition of an active trade or business, or
(ii)creating an active trade or business, or
(iii)any activity engaged in for profit and for the production of income before the day on which the active trade or business begins, in anticipation of such activity becoming an active trade or business,
whether you should take the maximum amount of depreciation allowable is not an easy question to answer. if you are in a low tax bracket in 2019 taking some in future years when you are in a higher tax bracket might be more beneficial. you might have a net operating loss, then a decision needs to be made as to whether to carry forward such loss (election required), if not a 2019 NOL would need to be carried back to 2017 with any remaining carried forward to 2018 and then 2020
another issue is should you form an LLC for the business - the theory is limited liability. a single member LLC reports just like a sole proprietorship on schedule C. the downside is there are fees for creating it and many states have annual fees for maintaining it.
since this is your first year, I strongly suggest that you use a pro who can look at the various alternatives to give you advice on the business and your taxes. he can also give you advice on other things.
if the equipment you will be using are personal assets that will be converted to business use, then forget about section 179 and 168(k)
