Susan purchases and places in service property costing $1,050,000 in 2019. She wants to elect the maximum Sec. 179 deduction allowed and does not plan to apply bonus depreciation. Her business income is $900,000. What is the amount of her allowable Sec. 179 deduction and carryover, if any? Group of answer choices 179 deduction Carryover $1,020,000 0 179 deduction Carryover $900,000 0 179 deduction Carryover $900,000 $120,000 179 deduction Carryover $900,000 $150,000

Question

Devin Orozco

Business

9 December, 12:11

Susan purchases and places in service property costing $1,050,000 in 2019. She wants to elect the maximum Sec. 179 deduction allowed and does not plan to apply bonus depreciation. Her business income is $900,000. What is the amount of her allowable Sec. 179 deduction and carryover, if any? Group of answer choices 179 deduction Carryover $1,020,000 0 179 deduction Carryover $900,000 0 179 deduction Carryover $900,000 $120,000 179 deduction Carryover $900,000 $150,000

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Answers (1)

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Lucian Ellison · Answer 1

d) Sec. 179 deduction $900,000

Carryover $150,000

Explanation:

The amount of Susan allowable Sec. 179 deduction is $1,050,000 (cost of asset) but it is limited to her business income ($900,000)

Hence,

Sec. 179 deduction $900,000

Carryover $150,000