Hello, I have a farm which is an LLC(sole prop). Business Income was very minimal ($1K) in 2019 as I purchased it in 2019. However, my W2 income from my regular job outside my business is higher ($150K). I had business expenses in the farm like drilling well, purchasing tractor etc($60K of which $25K for tractor). As my tractor was 100% used for business purposes, it qualifies for 100% depreciation under section 179.
Question: As the income from the business on Schedule C is only $1K, will the $25K depreciation related to tractor be applied towards my w2 income and reduce my taxable income from $150k to $125k?
