For you who still might not be totally clear about taxation of LLCs........

The following is from a "question and answer" session from Commerce Clearing House, with the question relating to LLCs and Section 179 expensing:

Q Are there limits to the Code Sec. 179 deduction for LLC, which would flow down to the individual taxpayer?

A The rules under section 179 and most other Code provisions that apply to an LLC depend upon how the LLC is taxed. Under the "check in the box" regulations a domestic LLC with two or more members that does not file an election to be taxed as a corporation has a default classification of partnership. A domestic LLC with one member that does not elect to be taxed as a corporation is considered a disregarded entity. Once the manner in which the LLC is taxed is known, the section 179 limitations (the dollar limitation, taxable income limitation, and investment limitation) are applied using the rules that apply to partnerships if the LLC is treated as a partnership or the rules that apply to corporations if it elected to be treated as a corporation. In the case of a partnership, for example, each limitation is applied separately at the partnership level and then again at the partner level. See TRC DEPR: 12,112.