Tax question re:Section 179

[mathey]

Anyone out there have a FT job in addition to running a PT farm business?

We have a Christmas tree farm that has had no income. This year, we bought a tractor, and to offset some additional tax burden (unrelated to the tree farm), I'd like to take 100% of the deduction via the Section 179 rule. The Section 179 deduction is typically limited to the amount of income from the business. I've read recently that simply by having income from my FT job, I have income and therefore can take the full deduction.

My CPA brother-in-law is not experienced in farm tax laws, but what's he's read, he agrees that it appears as though i can use the full 179.

Anyone have background/info/advice on this?

 

[fishman]

I have a full time job in addition to a part time ag-type consulting business (lake management). I took section 179 deductions last year against my other income although I did also have income from my part-time business. I use Turbotax and the information with the product supported those deductions. I was not audited and everything went fine, so far. No audit this year either. Your results may vary.

 

[mathey]

thanks for the reply...i'm using Tax Cut and it too let everything go through as well...

 

[DaveNay]

I did this too...deducted 100% of the purchase of my tractor this year. All of our income was from other sources (day jobs suck! /forums/images/graemlins/frown.gif) for both my wife and I.

Dave

 

[Alan L.]

No problem. Salary income is considered "trade or business" income for purposes of section 179. As long as you have "trade or business" income your OK, it doesn't have to be from the same business.