Ilene owns an unincorporated manufacturing business. In 2018, she purchases and places in service $2,536,000 of qualifying five- year equipment for use in her business. Her taxable income from the business before any depreciation deduction is $900,000. Ilene will elect out of bonus depreciation but plans to take the maximum allowable deduction under Sec. 179. Which of the following statements is true regarding the Sec. 179 election?
A) Ilene can deduct $1,000,000 as a Sec. 179 deduction in 2018, with no carryover to next year.
B) Ilene can deduct $964,000 as a Sec. 179 deduction in 2018, with no carryover to next year.
C) Ilene can deduct $900,000 as a Sec. 179 deduction in 2018, with no carryover to next year.
D) IIene can deduct $900,000 as a Sec. 179 deduction in 2018; $64,000 may be carried over to next year.
Correct Answer:
Verified
Q9: If at least 50% of the aggregate
Q35: When depreciating 5-year property,the final year of
Q2059: In April 2018, Emma acquired a machine
Q2061: Atiqa took out of service and sold
Q2063: For real property placed in service after
Q2065: A client placed three new business assets
Q2066: On April 12, 2017, Suzanne bought a
Q2067: William purchases nonresidential real property costing $300,000
Q2068: Chahana acquired and placed in service $1,165,000
Q2069: Paul bought a computer for $15,000 for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents