Legal Question in Tax Law in Illinois

179 deduction and Rental losses

I have rental property (Houses) and I purchased a truck to use 100% in the business this year. I wanted to take the 179 deduction for part of the truck but I have a loss on my rentals because of alot of improvements I made to them. I also work as a nurse which generates additional income. When I subtract the rental losses from my wages as a nurse I have taxable income. Can I take the 179 deduction based on that or because my rental property has a loss Im not allowed to claim a 179 decuction. Im a little confused about this and I would appreciate any help on this matter. Thanks


Asked on 3/13/07, 6:41 am

1 Answer from Attorneys
Cyndi Perez Trostin

Re: 179 deduction and Rental losses

A Section 179 deduction can only be taken in the year the asset was purchased.

If you have a business loss this year, you will not be able to use the deduction, but you can still claim it and carry it forward to next year to offset your 2007 business income.

It is claimed on Form 4562.

Good luck to you.

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Answered on 3/13/07, 11:08 am


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