For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's § 179 expense deduction is ___________ for 2019?
For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's § 179 expense deduction is ___________ for 2019?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 26P
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Question
For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.
b. How would your answer change if McKenzie decided to use additional first-year (bonus)
McKenzie's § 179 expense deduction is ___________ for 2019?
Expert Solution
Step 1
§ 179 expense deduction allows deduction for the purchase of qualifying assets. The limit was $1,020,000 in 2019.
Section 179 deduction cannot be larger than annual business income, bonus depreciation does not have this restriction.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT