Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? 2$ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?
Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? 2$ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 9CE
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Transcribed Image Text:Problem 8-39 (LO. 2, 3)
Olga is the proprietor of a small business. In 2020,
the business's income, before consideration of any
cost recovery or § 179 deduction, is $250,000.
Olga spends $620,000 on new 7-year class assets and
elects to take the § 179 deduction on them. She does
not claim any available additional first-year
depreciation. Olga's cost recovery deduction for 2020,
except for the cost recovery with respect to the new
7-year assets, is $95,000.
If required, round your answers to the nearest
dollar.
Click here to access the depreciation table to use
for this problem.
a. What is the tentative amount of Olga's overall §
179 deduction for the seven-year class assets before
any income limitation?
$
b. What is the total amount of Olga's § 179 deduction
for the seven-year class assets after any income
limitation?
Transcribed Image Text:c. What is Olga's total cost recovery depreciation
deduction (including any § 179 deduction)?
$
d. What is the amount of any § 179 carryforward?
$
%24
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