Rodriguez Corporation acquired 7-year property costing $450,000 on October 1, 2018. This is the only property acquired this year and Rodriguez elects to expense the maximum amount under Section 179 without applying bonus depreciation. Rodriguez's income before deducting depreciation is $320,000. What is the maximum amount that Rodriguez can deduct in 2018 for Section 179 expensing?
A) $25,000
B) $130,000
C) $320,000
D) $450,000

Question

Quizplus · Accepted Answer

The maximum Section 179 deduction is limited to the taxpayer's income, which is $320,000 in this case.

Rodriguez Corporation Acquired 7-Year Property Costing $450,000 on October 1