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If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

 
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6 Replies
MinhT
Expert Alumni

If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

If fact, the 179 deduction is subject to the net business income limit. You can only use the 179 deduction up the amount of your net income. Any excess will be carried over to future years.

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If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

I have retirement income, so TT allowed me the full deduction for this year.
MinhT
Expert Alumni

If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

You cannot take the 179 deduction to bring your business to a loss as you said in your question. The 179 deduction cannot offset your retirement income.
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If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

Maybe this isn't 179 deduction. It must be the "special depreciation" allowable for 2018 under the new tax law.  Turbo Tax stated I could take special depreciation and gave me full credit for it. I wonder if this special depreciation allows for carry over loss?
MinhT
Expert Alumni

If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

If you have a Net Operating Loss (NOL) this loss can be carried over to future years (even if the loss is caused by the special or bonus depreciation).
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If I take the full special 179 deduction allowed this year on my 100% business expense truck this year, I will have $-57,000 loss. Will this loss carry forward to 2019+.

THANK YOU!

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