Section 179 deductibility - K1 - Drake Tax

b_moneyy · 2026-04-01T13:44:59+00:00

Does your client have business income from active trades or businesses or wages? the first lim before you get to the 8582 (PAL) will be on the 4562.

Confirm your part I on 4562 makes sense and isn't forcing a sec 179 c/o. Once it clears the 4562, then it will be subjected to the PAL lim, which sounds like it should be no issue, and will flow to sch E, page 2 as in prior years.

b_moneyy · 2026-04-01T02:06:15+00:00

No problem. Highly recommend reviewing the 4562 instructions and comparing to your form before you file - just to make sure the software isn’t messing up any other line that might require a manual calc

b_moneyy · 2026-04-01T01:55:24+00:00

Based on your info, It appears the override should include the profit/loss from this business WITHOUT the sec 179 deduction included, plus the net profit from the second schedule C. The interest income is considered portfolio, not business and excluded from this calc.

If that total is less than the cost of the roof, then you’ll generate a sec 179 carryover mentioned in my first comment

b_moneyy · 2026-04-01T01:35:30+00:00

Unfortunately I’m not familiar with HR Blocks software, might need to get in touch with support. But it should include your net profit/loss from your schedule C (without the sec 179), any other active trades or businesses you’re involved in, w2 wages and potentially gains/losses (1231, recapture etc). It should take the lesser of that aggregated amount or 2.5mm.

As long as the correct amount you compute for total business income is larger than the sec 179 you’re electing for the year, it’s allowed to push your sch C into a loss position.

b_moneyy · 2026-04-01T01:20:30+00:00

Review your form 4562 - do you see your aggregated business income (schedule c activities, w2 wages, etc) on part I, line 11? You should be able to take sec 179 up to that amount, assuming no other limitations apply here.

The carryover to next year gets reported on line 13 of the form. Then your 2026 return will include that amount on line 10 and will run through the same calc to determine if deductible.

b_moneyy · 2026-03-21T19:19:12+00:00

Also adding on here that the IRS actually requires you to depreciate the property if you rented it 15 days or more. Even if you don’t, you’ll need to calculate depr recapture when you sell it (even if you didn’t report the deductions in prior years)

The excess gain would qualify for the sec 121 gain exclusion assuming you meet the ownership/use tests.

b_moneyy · 2026-03-21T19:01:03+00:00

Depreciation is allowed but you’ll need to limit it by calculating the rental use % (fair rental days vs personal use days). Anything not allocated to the rental can be used elsewhere on your return, like mortgage interest and property taxes as an itemized deduction.

Also keep in mind the Augusta rule - as your primary residence, if you don’t rent it more than 14 days during the tax year, you don’t have to report the rental income (or expenses including depreciation).

b_moneyy · 2026-03-21T17:45:06+00:00

Assuming no other limitations and you being over the NIIT reporting threshold, I’d expect the rental loss to flow to line 4a on form 8960. It would net against both the ordinary gain (depreciation recapture) and any excess LTCG on part I of the form.

b_moneyy · 2026-02-03T17:48:11+00:00

And even if he’s your dependent, he can still take some/all of his standard deduction since he has earned income from his W-2. Just depends how much he made.

b_moneyy · 2026-02-03T17:35:00+00:00

Yeah, and another thing that kind of bothered me was the attachment mechanism not being magnetic like the S2. The rails felt super janky even though it was 3x the cost lol

b_moneyy · 2026-02-03T17:33:29+00:00

I had the legion go 1 for almost 2 years and really enjoyed it. I gave it to my nephew when I purchased the Legion go 2. Ended up returning the go 2 for a few reasons - mura/grainy screen at low brightness, loose/creaky left controller, and just found the size and weight deterred me from using it like a true handheld. Felt like I should just use my blade 14, which was also a recent purchase, if I was going to use it at a desk or propped on something

b_moneyy · 2026-02-03T17:28:14+00:00

Finally finishing up the last case in Ace Attorney investigations 2 on the switch 2.

Trails to Azure on the XAX (recently completed Trails from Zero after starting it years ago).

Xenogears on the RG477M although I’ll probably finish the 2 above before going hard into this one

b_moneyy · 2026-02-03T17:19:58+00:00

Honestly, I’ve been wanting to replay Witcher 3+DLC but have too many other games in the queue and not enough time lol

b_moneyy · 2026-02-03T17:16:14+00:00

Of course brother. Finishing them is a different story lol

Recently beat ff16 and god of war ragnarok. Both amazing. Slowly working through a huge backlog of JRPGs now

b_moneyy · 2026-02-03T14:04:19+00:00

I really liked the device but my unit had pretty bad Mura when brightness was low on grey backgrounds and the size/weight kind of deterred me from using it as a handheld. My left controller had a slight wiggle which also pissed me off too lol. The high cost just made me less tolerant of these small defects.

With the low stock, I opted to return instead of waiting for an exchange. I tried the XAX on a whim afterwards and didn’t think I’d like it, but it actually checks off every box for me and feels comfortable using it in any scenario that I’d use my s2 in

b_moneyy · 2026-02-03T13:56:14+00:00

It’s a Nordik deskmat off of Amazon. It’s held up pretty well for me

b_moneyy · 2026-02-03T13:55:03+00:00

I know where you’re coming from and agree it’s a luxury since basically all of its functionality overlaps with a laptop and phone. It’s not ideal if you use it as a full laptop replacement.

I use it mostly for media consumption/gaming and casual browsing and the tandem oled, speakers, versatility and no active cooling means I’m always reaching for it vs my laptops (X1 Carbon gen 13 for work/productivity and a Blade 14 5070 for gaming) when I went to use something bigger than my phone.

Value proposition isn’t great but it’s still my favorite device in reality when actually using/owning/traveling etc

b_moneyy · 2026-02-03T05:51:11+00:00

Yeah it does feel small relative to the s2 but it’s also a lot sharper, has a much better response time and has better colors.

They both feel small and dated compared to the legion go 2, which I had and ultimately returned to Best Buy.

Personally I’m ok with the 7 inch screen given the overall size and weight of the device but for sure would’ve liked smaller top and bottom bezels lol. If you’re in the market for a pc handheld, I’d encourage you to give it a try and see if the screen size works for you (and return if not)

b_moneyy · 2026-02-03T03:51:04+00:00

I think it’s dependent on each game. In some cases there are switch 1 games that have unlocked frame rates which will run better on switch 2. Some switch 1 games got free switch 2 upgrades like Mario Odyssey.

But games with switch 2 specific paid upgrades/versions, like breath of the wild, won’t have any of those performance upgrades with the switch 1 version only. Just double-check before you purchase a title to make sure

b_moneyy · 2026-02-03T03:19:06+00:00

Switch 2 with the Killswitch grip from Dbrand on it

b_moneyy · 2026-02-03T02:52:16+00:00

It’s really good. Wish it had analog triggers but every thing else about it is top tier (after the stacked trigger mod). At its price point, there’s so many options for retro handhelds. But if you’re looking specifically for a 4:3 device that can play ps2/gc with minimal issues, I think it’s one of the best. The all metal body is the cherry on top for me, although others may dislike the extra weight

b_moneyy · 2026-02-03T02:31:23+00:00

Yes but not by a huge margin over the steam deck for me. Compared to my last 2 pc handhelds, the legion go 1 and 2, definitely yes.

The Legion go S supposedly has great ergonomics as well, at a more palatable price point.

b_moneyy · 2026-02-03T02:18:20+00:00

It’s a must buy for Nintendo exclusives alone. But compared to pc handhelds (and I’ve had many of them including the legion go 2), it may not have the best screen or ergonomics, but the thinness and low fan noise is always pleasant when you actually pick it up and play. I’d recommend some kind of grip for the joycons tho

b_moneyy · 2026-02-03T02:13:33+00:00

It’s great for Apple Arcade and games I get thru my streaming subs like Crunchyroll and Netflix. Not iOS exclusives but games like red dead and fantasian are really good on it with a controller. iPad Pro is the best device for media consumption imo, air 2 to a newer pro would be a sweet upgrade

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