Suv Tax Break 2
I am a 50% partner in a small business set up as a type S corporation. We recently purchased a new semi with company funds. I was wondering that if I also purchase a large SUV (for business purposes of course) with my personal income if I could write it off as well under 179. Or is it the case that if my partner and I decide to write off $100,000 of the semi under corporate taxes that I cant write off 100% of the SUV on my personal income taxes also. I
limitations for section 179 are determined at the individual level. Your K-1 for the S-corp will reflect the 179 deduction separate from ordinary income. This will be combined with 179 from all other sources and only then is the deduction determined based income and overall limit.
Also, if KY is like CA, you'll have a BIG difference in state income since CA doesn't conform to federal.