On November 7, 2018, Wilson Corporation, a calendar-year taxpayer, acquires 7-year property for $1,090,000. This is the only property acquired this year. Section 179 expensing is elected, without application of bonus depreciation. What is Wilson's total depreciation deduction for 2018?

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Quizplus · Accepted Answer

Since Section 179 expensing was elected without bonus depreciation, Wilson Corporation can expense up to $1,000,000 of the property's cost in 2018. The remaining cost of $90,000 is subject to regular depreciation over the property's 7-year recovery period. Therefore, Wilson's total depreciation deduction for 2018 is $1,000,000 (Section 179 expense) + $3,213 (regular depreciation on $90,000) = $1,003,213.

On November 7, 2018, Wilson Corporation, a Calendar-Year Taxpayer, Acquires