Is depreciation expense limited to the net income?
For example, IF:
Revenues: $100,000
Expenses (including depreciation expense of $12,000): $105,000
Net income / loss: -$5,000
Is that "ok?"
Under section 179, total deductions for qualified expenses cannot exceed net income, correct? So, one might consider using depreciation instead of accelerated expense (Sec. 179) for something like a vehicle purchase if their net income does not exceed the total sec. 179 deduction??
Thanks!
For example, IF:
Revenues: $100,000
Expenses (including depreciation expense of $12,000): $105,000
Net income / loss: -$5,000
Is that "ok?"
Under section 179, total deductions for qualified expenses cannot exceed net income, correct? So, one might consider using depreciation instead of accelerated expense (Sec. 179) for something like a vehicle purchase if their net income does not exceed the total sec. 179 deduction??
Thanks!