Section 179 deduction not reducing income

Asaxena2 · ‎February 19, 2026

I bought an asset worth 50K in 2025. I have claimed Section 179 deduction of 30K and Special depreciation allowance of 20K. Special deprecation allowance of 20K shows up an expense, however Section 179 deduction does not show up as expense and hence does not reduce income. My income is much more than 50K. Any suggestions on how to fix this?

DavidD66

Section 179 does not "show up" the same way other expenses do. Section 179 expense is calculated on Form 4562. How it gets to Form 1040 depends on what type of business structure you have. If you are filing Schedule C, the deduction is reported on Line 13 - Depreciation and Section 179 Expense. For a partnership or S-Corp the deduction is reported on Schedule K-1 which flows to Schedule E of your 1040 tax return.

The deduction for Section 179 Expense is limited to your business' taxable income. So if your business is showing a loss, you will not see a Section 179 Expense deduction. Instead, it will carry forward.

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AmeliesUncle

Is this an S-corporation or a Partnership?

If so, that is why. The Section 179 doesn't happen directly on the 1120-S or 1065. It passes through on the K-1 and takes effect on your personal tax return.