Sorensen Corporation purchases equipment in 2018 for $200,000. Sorensen has substantial taxable income and desires to minimize this amount to the fullest extent possible. How much can Sorensen deduct under Section 179?

Question

Quizplus · Accepted Answer

Under Section 179 of the Internal Revenue Code, businesses can deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This means that if Sorensen Corporation purchased equipment for $200,000, it could potentially deduct the entire amount in the year of purchase, assuming it meets all the requirements and limits set forth in Section 179.

Sorensen Corporation Purchases Equipment in 2018 for $200,000