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Level 2
January 26, 2021
Question

179d tax incentive to the designer

  • January 26, 2021
  • 5 replies
  • 27 views

Has anyone helped a client with a 179d credit? No one seems to know where exactly to take the credit on the designer's personal return...

This topic has been closed for replies.

5 replies

January 27, 2021

It's not a "credit", it is a deduction.

Is the taxpayer self employed filing a Schedule C?  If so, just enter it as an "other" deduction on Schedule C.

Level 2
January 28, 2021

He's an employee, not self-employed.

January 28, 2021

I just dug through the Code a bit, and unfortunately my first impression is that it would be a misc itemized deduction, which would usually be subject to the 2% haircut, but not currently allowed.

I suppose if you disagree with that and want to be aggressive and take the deduction, you could enter it as a negative amount as an "other income" on Schedule 1.  But as of now, my reading of things would put it in the itemized deductions with a 2% haircut (which is not even allowed right now).