During 2018, Linda has a $12,000 net loss from her beauty salon. Her spouse, Bart, earns $23,000 as a tennis professional. During 2018, Bart purchases $215,000 of Section 179 equipment for his business. What is the amount of Linda and Bart's Section 179 deduction for 2018?

Question

Quizplus · Accepted Answer

Since Linda had a net loss of $12,000, she cannot claim a Section 179 deduction. Therefore, the maximum amount of Section 179 deduction that Bart can claim is $11,000 ($23,000 - $12,000). The amount of equipment purchases is not relevant in determining the maximum deduction.

During 2018, Linda Has a $12,000 Net Loss from Her