On August 11,2014,Nancy acquired and placed into service residential rental property,which cost $430,000; the cost of the land has been excluded.Nancy annually elects the maximum allowed Sec.179 deduction.The total depreciation for the year is (rounded)
A)$5,865.
B)$4,141.
C)$5,117.
D)$15,636.

Question

Quizplus · Accepted Answer

The maximum Sec.179 deduction for 2014 is $500,000. Nancy's cost of the property is $430,000, so she can deduct the entire cost under Sec.179. The remaining depreciation is $430,000 - $500,000 = -$70,000. Since depreciation cannot be negative, Nancy's total depreciation for the year is $0.

On August 11,2014,Nancy Acquired and Placed into Service Residential Rental