A taxpayer places a $50,000 5-year recovery period asset in service in 2017.This is the only asset placed in service in 2017.Assuming half-year convention,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. Since the taxable income is $5,000, the maximum Section 179 deduction allowed is $5,000.

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