The Section 179 Deduction
Q: I did not see where the ($4,506) came from? What am I missing?
A: The $4,506 is the ordinary business loss displayed on Slide 43. It is of two taxable income (loss) streams generated by Greater Pacific Realty Partners and passed to Douglas McPherson for inclusion on Schedule E / Part II in his personal income tax returns. The other 2018 income stream from Greater Pacific Realty Partners is net rental real estate income of $86,452. The two amounts sum to $81,946, which is the amount reported on Schedule E / Part II at Line 28A.
We did not provide this information as part of the case materials for the session, but, rather, noted the two amounts on Slide 43 that summed to the net taxable income from Greater Pacific Realty Partners reported on Schedule E / Part II.
Course overview: The Section 179 Deduction