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Old 03-27-2015, 12:03 PM
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show section 179 full deduction on scheduleL

I have a partnership with spouse. We can take the full section 179 deduction. We bought a cargo van for $21936 and took the same deduction. How do I show this on form 1065 schedule L since the asset and full depreciation is taken the same year? I only have previously shown line 1 cash column a and d and depreciation line 9a and line 9b. Then these totals on line 22 a and b.

I don't know how to reflect a purchase full deduction in the same year. Do I show

21936 line 9a column a and c
21936 line 9b column a and c
0 on line 9b column b and d


Last edited by lisafig10 : 03-27-2015 at 12:05 PM. Reason: Add info

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Old 03-28-2015, 01:16 AM
Join Date: Oct 2010
Posts: 5,245
it isn't deducted from the partnership expenses but goes on k-1 to partner.Section 179 expense available to distribute to partners is limited to the partnership’s actively conducted trade or business income .Even though a partner’s Sch K-1 may show income due to specially allocated income or expense items per the partnership agreement, if the partnership overall has a loss, Section 179 expense cannot be distributed to any of the partners in the current year. However, any disallowed deduction can be carried over to future years and distributed up to the amount of partnership income in a given year. A Partnership other than an electing large partnership should not include any Section 179 expense deduction on Part IV, line 22 of the Form 4562; so, the Section 179 expense is not reported on page 1 of Form 1065, but instead the deduction is reported on Sch K as said and passed through separately to each partner on the appropriate line of the partner’s Sch K1.The maximum Section 179 dollar limit, investment limit, and the taxable income limitation are applied separately at the partnership and partner levels. At each level, the maximum Section 179 expense can be limited by the cost of qualifying property in excess of the investment limit and the total amount of taxable income derived from the active conduct of all trades or businesses that a taxpayer engaged in during the tax year.

The maximum Section 179 and investment limits are determined by the IRS each year. The amount allocated by a partnership to a partner is not considered in determining whether the partner placed more than the applicable investment limit of qualifying property into service during the tax year. Any amount of Section 179 disallowed due to the investment limit is lost and may not be carried over to another tax year.

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