Chahana acquired and placed in service $1,165,000 of equipment on August 1, 2018 for use in her sole proprietorship. The equipment is 5- year recovery property. No other acquisitions are made during the year. Chahana elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Chahana's total deductions for 2018 (including Sec. 179 and depreciation) are

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Chahana can expense $1,000,000 under Sec. 179 for 2018. The remaining $165,000 is depreciated over 5 years using MACRS, resulting in a deduction of $33,000 for 2018. Total deductions are $1,033,000 ($1,000,000 + $33,000).

Chahana Acquired and Placed in Service $1,165,000 of Equipment on August