Lease bonus and Sec 179


R

Ray

I have a farmer client who received a substantial lease
bonus on non-producing property. He would like to use Sec
179 to reduce the tax on the bonus. He has purchased new
assets in excess of his income from farming, can the income
from the lease bonus be used to increase income in the
calculation of allowable Sec 179? We are in the State of
Texas.
 
Last edited by a moderator:
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H

Harlan Lunsford

Ray said:
I have a farmer client who received a substantial lease
bonus on non-producing property. He would like to use Sec
179 to reduce the tax on the bonus. He has purchased new
assets in excess of his income from farming, can the income
from the lease bonus be used to increase income in the
calculation of allowable Sec 179? We are in the State of
Texas.
If by "lease bonus", you mean income reported like rent on
schedule e, then it's not earned income and sec 179 won't
fly.

ChEAr$,
Harlan Lunsford, EA n LA
 
Last edited by a moderator:

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