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179d tax incentive to the designer

cindy85296
Level 1

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...

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5 Replies 5
TaxGuyBill
Level 14

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.

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cindy85296
Level 1

He's an employee, not self-employed.

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TaxGuyBill
Level 14

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).

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cindy85296
Level 1

That's what was my initial thought as well.  Thanks for your input!

 

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qbteachmt
Level 15

"He's an employee, not self-employed."

Is he a shareholder, then? For a passthrough entity?

Are you asking for this:

https://www.irs.gov/pub/irs-utl/am2010007.pdf

A "regular" employee would not benefit from this.

Have they got the full determination?

Here's the earlier discussion topic:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/balance-sheet-179d-credit...

 

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