MACRS deprecaition question when w2 & 1099 income

[jimbob72]

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

[tagteam]

Bonus depreciation, unlike the Section 179 deduction, is not limited to net income.

You can deduct up to $18,000 for the first year.

See https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-...