WITAXLADY Posted October 6, 2021 Report Share Posted October 6, 2021 1065 - does line 1 ordinary income net against sec 179 for SE Income on line 14A It does for taxable income and it would make sense for SE tax... I have a Sch F inside the 1065 so the numbers do not always flow properly - like never... so I am second guessing myself. First year they have had a profit!! Thx D Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 6, 2021 Report Share Posted October 6, 2021 6 hours ago, WITAXLADY said: 1065 - does line 1 ordinary income net against sec 179 for SE Income on line 14A It does for taxable income and it would make sense for SE tax... The K-1 would show the s.e. income before the sec 179 deduction. The netting will occur on the individual return because there are limitations at the individual level that must take place to determine whether or not all of the sec 179 from that particular entity will be allowed or not. 3 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 6, 2021 Report Share Posted October 6, 2021 22 minutes ago, jklcpa said: whether or not all of the sec 179 from that particular entity will be allowed or not. And for that reason, bonus depreciation is sometimes a better choice, more so now since it applies to used property per TCJA. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 6, 2021 Author Report Share Posted October 6, 2021 thx - I knew somewhere it netted! I rarely use bonus as WI does not recognize.. D Quote Link to comment Share on other sites More sharing options...
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