Laven Company, a calendar year taxpayer, purchased a total of $561,240 new depreciable personalty during 2013. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Under section 179, taxpayers can expense up to $500,000 of the cost of new depreciable personal property placed in service during the tax year. Since Laven purchased $561,240 of new depreciable personalty during 2013, they can elect to expense $500,000 of the cost. The remaining $61,240 is then capitalized and subject to 50% bonus depreciation and MACRS depreciation.

Laven Company, a Calendar Year Taxpayer, Purchased a Total of $561,240