A taxpayer places a $50,000 5-year recovery period asset in service in 2018.This is the only asset placed in service in 2018.Assuming half-year convention, no bonus depreciation, an election to expense under Section 179, and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing?

Question

Quizplus · Accepted Answer

The Section 179 deduction is limited to the taxpayer's taxable income, which is $5,000 in this case. Therefore, the maximum immediate expensing under Section 179 is $5,000.

A Taxpayer Places a $50,000 5-Year Recovery Period Asset in Service