Have new business. will file jointly with income from wifes w-2, my prev. work w2 and 1099 from new business (just starting so less of all income)
Q: if new business and 1099 income is less then the new car depreciation limit (18K X.8 usage). 14.400.00
1. can I use the full 1st yr bonus depreciation of 14.4K ?
- That generates a business loss
2. does that loss carry over to combined income (w2 ) and reduces the overall taxable income?
3. or can you only use up to the business income number
For ex. (simplified) would it work like:
new business 1009 is 2500.00
car deprecation allowance 14,400 - special 1st yr bonus deprecation based on usage
net results loss(11,900)
w2 wages 80,000 - wife and my prev. work w2, and does not include 1099 income of 2,500
1040 net income 80k-11.9lk loss or 68.100.00
Bonus depreciation, unlike the Section 179 deduction, is not limited to net income.
You can deduct up to $18,000 for the first year.