On July 10, 2019, Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The SUV is used 100% for business. Determine Ariff's maximum deduction for 2019, assuming Ariff's § 179 business income is
$110,000. Ariff does not take additional first-year depreciation.

Question

Quizplus · Accepted Answer

The maximum deduction is $34,400, which includes the $25,000 § 179 deduction for SUVs over 6,000 pounds and the regular MACRS depreciation on the remaining $45,000 cost.

On July 10, 2019, Ariff Places in Service a New