bonus depreciation

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Message Board bonus depreciation

This topic contains 4 replies, has 2 voices, and was last updated by Anonymous 1 day, 2 hours ago.

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  • #124438
    Anonymous

    For 2018, if a company has greater than $2.5 million in acquisitions (lets assume its $2.7 million), then the 179 deduction is phased out slightly…but the remainder can be taken as bonus depr correct? can bonus depr bring the entity to a loss? Is there a limit on bonus depr? Thanks

  • #124474
    Lynn Freer
    Participant

    Actually I think if you use 179 you have opted out of bonus. Bonus depreciation can create a loss 179 cannot

  • #126122
    Anonymous

    Thats not the case i think….see below…can bonus depr cause a loss or does the loss carryforward?

    Bonus Depreciation is taken after the Section 179 deduction is taken. Thus, it is useful to very large businesses spending more than whatever Section 179’s spending limit is for that year. Also, businesses with a net loss in a given tax year qualify to carry-forward the Bonus Depreciation to a future year. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in the given tax year.

  • #126160
    Anonymous

    So i guess my question is, if a client has passthrough K-1’s and one of the K-1’s generates a loss via bonus depreciation, can that loss offset other K-1’s that have generated income (assume non passive)? Thanks

  • #126316
    Anonymous

    Can someone please let me know?