During 2017,Linda has a $12,000 net loss from her beauty salon.Her spouse,Bart,earns $23,000 as a tennis professional.During 2017,Bart purchases $215,000 of Section 179 equipment for his business.What is the amount of Linda and Bart's Section 179 deduction for 2017?

Question

Quizplus · Accepted Answer

As Linda had a net loss of $12,000, she cannot take advantage of the Section 179 deduction. However, Bart can take a deduction of $11,000 ($215,000 - $204,000 taxable income = $11,000) for his business equipment purchases, as his taxable income is only $23,000. Therefore, the total Section 179 deduction for Linda and Bart is $11,000.

During 2017,Linda Has a $12,000 Net Loss from Her Beauty