On November 7, 2019, Wilson Corporation, a calendar-year taxpayer, acquires 7-year property for $2,650,000.This is the only property acquired this year.Section 179 expensing is elected, without application of bonus depreciation.What is the maximum deduction allowable under Section 179 for Wilson for 2019?

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For the tax year 2019, the maximum Section 179 expense deduction is $1,020,000. However, this deduction begins to phase out dollar-for-dollar when more than $2,550,000 of qualifying property is placed in service during the tax year. Since Wilson Corporation acquired property costing $2,650,000, which exceeds the phase-out threshold by $100,000, the maximum allowable Section 179 deduction is reduced by this amount. Therefore, the maximum deduction Wilson Corporation can claim under Section 179 for 2019 is $920,000 ($1,020,000 - $100,000).

On November 7, 2019, Wilson Corporation, a Calendar-Year Taxpayer, Acquires