W&F Company,a calendar year taxpayer,purchased a total of $2,594,700 tangible personalty in 2019.How much of this cost can W&F elect to expense under Section 179?
A)-0-
B)$44,700
C)$975,300
D)$1,020,000

Question

Quizplus · Accepted Answer

In 2019, the maximum Section 179 expense deduction was $1,020,000, but it begins to phase out dollar-for-dollar after $2,550,000 of qualifying property is purchased. Since W&F purchased $2,594,700, the deduction is reduced by $44,700 ($2,594,700 - $2,550,000), resulting in a maximum deduction of $975,300 ($1,020,000 - $44,700).

W&F Company,a Calendar Year Taxpayer,purchased a Total of $2,594,700 Tangible