Sally purchased new equipment for her consulting business.She allocates the Section 179 deduction among the new assets.One piece of equipment cost $350,000 and was allocated one-half of the allowable Section 179 deduction and therefore has a depreciable basis of $100,000.

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This is true. According to Section 179, the maximum deduction for 2020 is $1,040,000, and the eligible property placed in service during the year must not exceed $2,590,000. The depreciable basis of an asset is calculated by subtracting the Section 179 deduction from the cost of the asset. In this case, the cost of the equipment was $350,000, and it was allocated one-half of the allowable Section 179 deduction, which would be $520,000. Therefore, the depreciable basis of the asset is $350,000 - $260,000 = $90,000.

Sally Purchased New Equipment for Her Consulting Business