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Section 179 Benefits for LLC owners

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. Concerning the Section 179 deduction, you specifically stated that sole proprietors, partnerships and S corporations enjoy this deduction. Is the same deduction allowed for an LLC? D.G., Pensacola, Fla.

A. Yes. Actually, what we said was that the IRS limits the Section 179 deduction to taxable income from the active conduct of all trades or businesses. This would include limited liability companies (LLCs), as well as the business entities you’ve already mentioned.

Tip: Generally, the IRS taxes an LLC like a partnership, so income is passed through to you and reported on your personal return.

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