A. Yes. Besides the maximum annual allowance figure, your deduction is limited to your taxable income from the active conduct of all trades or business. That includes your wages as an employee and your spouse’s wages, as well as income from sole proprietorships, partnerships and S corporations. Therefore, you can count the entire $150,000 of wages for this purpose. Tip: The maximum Section 179 allowance for 2006 is $108,000, which should give you plenty of leeway to buy the assets you’ll need for your new business.
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