Ok ... a 179 deduction CANNOT produce a loss on the Sch C so there is nothing allowed to negate the wages. Any unallowed 179 deduction is carried forward and used on the Sch C in the future.
Now instead of the 179 you can use the bonus depreciation instead ... that can produce a deductible loss on the Sch C which flows to the 1040. However you do NOT need to bonus the entire amount ... this is where a paid tax pro would council you to your options not only this year but also for the future. So are you going to hurt yourself in the future by making a mistake today? Will the business even be open in the future and if so for how long? Taking the 179 or bonus depreciation today will reduce the basis in the asset so if you sell it later you will have a gain then thus just pushing off the inevitable. Lots of things to consider.
