McKenzie purchased qualifying equipment for his business that cost $212,000 in 2020. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2020 and any carryover to 2021. § 179 expense deduction for 2020: $fill in the blank 1 § 179 carryover to 2021: $fill in the blank 2 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. § 179 expense deduction for 2020: $fill in the blank 3 § 179 carryover to 2021: $fill in the blank 4
Exercise 8-24 (LO. 3)
McKenzie purchased qualifying equipment for his business that cost $212,000 in 2020. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.
If an amount is zero, enter "0".
a. Calculate McKenzie's § 179 expense deduction for 2020 and any carryover to 2021.
§ 179 expense deduction for 2020: $fill in the blank 1
§ 179 carryover to 2021: $fill in the blank 2
b. How would your answer change if McKenzie decided to use additional first-year (bonus)
§ 179 expense deduction for 2020: $fill in the blank 3
§ 179 carryover to 2021: $fill in the blank 4
| Summary of Tables | |
|---|---|
| Exhibit 8.3 |
Regular MACRS table for personalty.
|
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