There are three main limits on the amount of section 179 deductions:
1) A dollar limit on the deduction ( dollar limit)
2) Limit on the amount of investment in section 179 property (investment limit)
3) A taxable business income limit (income limit)
One and two above I presumed have already been determined. After these are applied, then the deductions are further limited to the individual taxpayer's taxable income from the active conduct of a trade or business during the tax year. If you elected to expense more than taxable income limit, then the overage is not deductible and is carried forward for an unlimited number of years.
Again make sure all three limits are tested before you make a decision as to whether taking the Section 179 is preferable than taking normal depreciation.
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