The Malik Estate operates a manufacturing business. Malik made no income distributions this year. It can claim the full deduction for the MACRS depreciation of the assets of the business.

Question

Quizplus · Accepted Answer

The Malik Estate, as the entity operating the manufacturing business, can claim the full deduction for MACRS (Modified Accelerated Cost Recovery System) depreciation on its business assets, regardless of whether it made income distributions this year. MACRS is a method of depreciation for tax purposes allowed in the United States, which permits the accelerated depreciation of property values over time, and it is unrelated to income distributions.

The Malik Estate Operates a Manufacturing Business