Allen Corporation acquired 5-year property costing $150,000 on September 10, 2018. 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 2018 for Section 179 expensing?
A) $10,000
B) $15,000
C) $25,000
D) $150,000

Question

Quizplus · Accepted Answer

Allen Corporation can deduct up to the amount of its income before depreciation, which is $15,000, as Section 179 deduction is limited to the taxable income from the active conduct of any trade or business.

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