Answers · Partnerships · Form 1065
Section 179 for Partnerships
Partnership Section 179 is elected at entity level and passed through as a separately stated item, with limits also applying to partners.
How it works
The rule, and what it turns on.
The partnership makes the election and reports the deduction separately so each partner applies basis and business-income limits.
Example
$80,000 election allocated 50/50 gives $40,000 K-1 Section 179 to each partner before partner-level limits.
Common mistakes
What we see go wrong, and what we do instead.
- Double deducting Section 179.
A better approach
- Model entity and partner business-income limits.
Authority
Where this comes from, so you can check it.
IRC §§167, 168 and 179; Treas. Reg. §1.167(a)-1; IRS Publication 946; Form 4562 and instructions.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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