NLT Inc. purchased only one item of tangible personalty in 2015. The cost of the item was $24,000. NLT's taxable income before any Section 179 deduction was $7,100. NLT can elect Section 179 for only $7,100 of the cost of the property.

Question

Quizplus · Accepted Answer

According to Section 179, the maximum deduction that can be elected for 2015 is $25,000, which is higher than the cost of the property purchased by NLT. Therefore, NLT can elect Section 179 for the full cost of $24,000.

NLT Inc Purchased Only One Item of Tangible Personalty in 2015