In 2013, Gail had a § 179 deduction carryover of $30,000. In 2014, she elected § 179 for an asset acquired at a cost of $115,000. Gail's § 179 business income limitation for 2014 is $140,000. Determine Gail's § 179 deduction for 2014.

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Gail's § 179 deduction for 2014 is limited by her business income limitation of $140,000. She elected § 179 for an asset costing $115,000, so she can deduct up to $115,000. However, she also had a carryover from the previous year of $30,000, so her total § 179 deduction for 2014 is $115,000 + $30,000 = $145,000. Since this exceeds her business income limitation, the deduction is limited to $140,000. Therefore, the correct answer is C, $40,000.

In 2013, Gail Had a § 179 Deduction Carryover of $30,000