A taxpayer places a $50,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, no bonus depreciation, an election to expense under Section 179, and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing?

Question

Quizplus · Accepted Answer

The taxpayer can only expense up to the amount of their taxable income after all deductions except Section 179, which is $5,000. This prevents creating a loss with Section 179 expensing.

A Taxpayer Places a $50,000 5-Year Recovery Period Asset in Service