Section 179 allows a business, with certain restrictions, to do which of the following?
A) Offset the tax liability with the cost of the asset in the year of purchase.
B) Expense the asset immediately in the year of purchase.
C) Expense the asset using double declining balance depreciation during the life of the asset.
D) Get a government grant to purchase the asset.

Question

Quizplus · Accepted Answer

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This means that if a business buys or leases a piece of qualifying equipment, it can deduct the full purchase price from its gross income. This is essentially expensing the asset immediately in the year of purchase rather than depreciating it over time.

Section 179 Allows a Business, with Certain Restrictions, to Do