Depreciation deduction 100%?

Forum|Forum|6 years ago
December 7, 2019
1 reply
13 views

If a partnership, grossing approximately 485k. The final net is 20k for the tax year, 10k for each partner. However, there was new machinery purchased in 2018 for 80k. If they elect to take the 100% depreciation...is the full amount taken? leaving the business with a -60k loss for the tax year? Leaving each partner with -30k?

Lacerte Tax

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Best answer by TaxGuyBill

Yes.

As a side point, you don't "elect" the 100% Bonus depreciation. That is the required default unless you "elect out" of it.

T

TaxGuyBillAnswer

Level 15

Yes.

As a side point, you don't "elect" the 100% Bonus depreciation. That is the required default unless you "elect out" of it.

D

dmytrolakotaAuthor

Level 3

Would it be different if the company did not make any profit for the year and net was say -10k....? would they still be able to take the deduction? I guess what I'm trying to figure out is if the partnership needs to make a profit or not to use the 100% depreciation?

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