The basis of property for cost recovery is reduced by the § 179 amount that is disallowed because of the business income limitation.

Name: The basis of property for cost recovery is reduced by the § 179 amount that is disallowed because of the business income limitation.
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The statement is true. If a taxpayer exceeds the business income limitation for claiming Section 179 expense deduction, the disallowed amount reduces the basis of the property for cost recovery purposes.

The Basis of Property for Cost Recovery Is Reduced by the §