tst Posted March 4, 2014 Author Report Share Posted March 4, 2014 meant outside basis worksheet for partners inside assets of partnership Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 4, 2014 Report Share Posted March 4, 2014 tst, are you aware that you can edit your post if you realize you made a typo or left something off, etc? At the bottom of your post, run your cursor over the right side and you will see options to edit or delete. On other people's posts you have the 'report' option, if you find a post seriously offensive. Hopefully you will not need that one, but like every open forum, there is an occasional spammer that appears, and we don't want them to be overlooked. Reporting a spammer lets us take care of them quickly. Quote Link to comment Share on other sites More sharing options...
Marie Posted March 4, 2014 Report Share Posted March 4, 2014 Back to the section 179 - my partnership shows an ordinary loss. I can't get the 179 deduction to flow to the K-1. Both partners have other earned income to put against the partnership 179. how do I get it on the k-1 so IRS knows it flowed from there, and where do I put on the individual return? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 4, 2014 Report Share Posted March 4, 2014 The sec 179 expense isn't showing up on the K-1s because it is only available to distribute to partners if the partnership shows actively conducted trade or business income as defined in IRC Section 702(a). Even though partners' K-1s might show income due to specially allocated income or expense items, if the partnership overall has a loss, Section 179 expense cannot be distributed to any of the partners in the current year. Any disallowed deduction can be carried over to future years and distributed up to the amount of partnership income in a given year. 2 Quote Link to comment Share on other sites More sharing options...
Marie Posted March 5, 2014 Report Share Posted March 5, 2014 ok, thanks, I finally am being able to read that right. on an individual return, 179 can be netted against w-2 wages, but a partnership cannot give out a 179 deduction if the partnership has a loss on ordinary income. if equipment is new, the special allowance (50%) would be allowed? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 5, 2014 Report Share Posted March 5, 2014 Yes. If they expect to make more in the upcoming years, why are you so set on accelerating depreciation? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 5, 2014 Report Share Posted March 5, 2014 My question exactly. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 5, 2014 Report Share Posted March 5, 2014 Probably because they have other income they want to shield with the deduction. Time Value of Money. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 5, 2014 Report Share Posted March 5, 2014 But if it creates a loss which leads to it being unused...what's the point? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 5, 2014 Report Share Posted March 5, 2014 The point is that they are trying to find a way to take it now, Can't, but don't blame them for asking. Quote Link to comment Share on other sites More sharing options...
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