How does asset depreciation differ if at all in cases of a sole proprietorship with income below the standard deduction?

[eljaypc01]

If someone started a sole proprietorship in 2018, purchased business assets for 100% business use in 2018, put those assets to use in 2018, and had business gross income below the standard deduction, what effect of taking the standard deduction in 2018 have with regard to depreciation of those business assets?  

Beyond forfeiting section 179 deductions, are there any other negative consequences?

More generally, are there any other issues to consider in this case?

[pk]

I am not sure I understand the intent of this question --- a business is started  and operated with the intent of making money and assets are bought and used for the same purpose. The type of entity has nothing to do with it.  If you are  inquiring about a business being used for the purposes of reducing personal income tax  , then this is wrong place for that kind of advice.  This place is only for help in preparing  a correct return by using TurboTax software.

But if you are talking about a business  is making very little in terms of net income such that  the owner's taxable income is zero or thereabouts , then you still have to file and pay the SE taxes ( 15.3 %  SECA) on most of the net income. Thus you have to file.

Am I in the left field on this ?

[eljaypc01]

Thank you.  There was no other personal income in 2018.  I wasn't asking whether or not I needed to file.  I'm just trying to figure out if it'd be easier to take the standard deduction for 2018 without sacrificing potential asset depreciation deductions in the future.  

We are talking about gross income less than the standard deduction with expenses and assets costing more than actual income for 2018.  Not ideal of course.  But it is what it is.

[pk]

Let me  say what I understand from the above ---  assuming that you are filing MFJ, the standard deduction is $24,000.  And so you are saying that your net income ( gross  income less  expenses ) before depreciation, is less than $24,000.  The way I see it is that  this net income is really not  NET income  because you have to take allowable depreciation. Even section 179 can be taken to the extent there is net positive income or you have to take normal depreciation on the asset.  The final taxable income is after all these  items -- expenses  and depreciation.   Discussion on whether  this makes your  final taxable income is premature at this point. Also note that your SECA is based on net income after all expenses ( as long as positive).

For trying out  what your tax liability may be under different scenarios   ( and under windows ),  just  try out  the  scenarios, note the results and  go back and  try with a different scenario.  I have not tried this  recently , but there used to be "what-if " feature ( if I remember correctly )  in the downloaded/ CD version.  But try  the different scenarios and see  what happens.   Note  that because  your on CD version, you have access to forms mode   ( select View, from drop down select "forms", left pane shows all the forms/worksheets  being used , click on a form and the right pane shows the form/worksheet ) you can try all kinds of scenarios -- just carefully