Question
Please put the answer in an 1120 accounting form Andy has operated his moving company, MoveOn, as a sole proprietorship for several years. In the
Please put the answer in an 1120 accounting form
Andy has operated his moving company, MoveOn, as a sole proprietorship for several years. In the current tax year, MoveOn placed into service $700,000 of real property improvements eligible for immediate expensing under code 179 (but not eligible for bonus depreciation). Andy also joined with another local mover to form and operate a storage partnership, The Attic LLC. Andy holds a 90% capital and profits interest in The Attic.
This year, The Attic purchased and placed into service $2,900,000 of property eligible for expensing under 179 (and not eligible for bonus depreciation). Andy has $800,000 of taxable income from MoveOn and a $750,000 share of ordinary income from his 90% ownership of the Attic, both before considering any code 179 expense. Assuming that Andy wants to maximize his current deductions (without sacrificing future deductions), how much can he elect to deduct under code 179? How are any remaining expenditures treated?
Please put the answer in an 1120 accounting form.
The country is the U.S and the 1120 form is on the IRS website.
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