During 2018, Witt Processing Corporation places $210,000 of Section 179 property in service for use in its business. What is the amount of Witt Processing's maximum Section 179 deduction for 2018?
A)$210,000
B)$200,000
C)$25,000
D)$105,000
E)$50,000

Question

Quizplus · Accepted Answer

For the tax year 2018, the maximum Section 179 deduction was $1,000,000, subject to a phase-out threshold of $2,500,000. Since Witt Processing Corporation placed $210,000 of property in service, which is below both the maximum deduction and the phase-out threshold, the maximum Section 179 deduction they could claim is the full amount of the property placed in service, which is $210,000.

During 2018, Witt Processing Corporation Places $210,000 of Section 179