Allen Corporation acquired 5-year property costing $150,000 on September 10,2015.This is the only property acquired this year and Allen elects to expense the maximum amount under Section 179.Allen's income before deducting depreciation is $15,000.What is the maximum amount that Allen can deduct in 2015 for Section 179 expensing?

Question

Quizplus · Accepted Answer

$25,000 is the maximum potential Section 179 deduction but is limited to Allen's income of $15,000.

Allen Corporation Acquired 5-Year Property Costing $150,000 on September 10,2015