Fariq purchases and places in service in 2016 personal property costing $2,031,000.The property does not qualify for bonus depreciation.What is the maximum Sec.179 deduction that Fariq can deduct,ignoring any taxable income limitation?
A)$500,000
B)$0
C)$479,000
D)$469,000

Question

Quizplus · Accepted Answer

The maximum Sec. 179 deduction for 2016 is $500,000. However, the property must be used more than 50% in a trade or business. Since the property is personal property, it is not used in a trade or business. Therefore, the maximum Sec. 179 deduction is $0.

Fariq Purchases and Places in Service in 2016 Personal Property