In July 2014, Tish acquires and places in service a business machine costing $40,000 with a 7-year MACRS recovery period. Tish elects the maximum allowable Sec. 179 expense on the machine. In August 2014, she also places in service business equipment costing $165,000, with a 5-year MACRS recovery period. Tish's taxable income (before the Sec. 179 expense and the 50% of SE tax deduction) is $16,000.

a. What is Tish's allowable 2014 Sec. 179 expense on the machine? What amount can she carry over to 2015?

b. What is Tish's total 2014 depreciation deduction?

c. What are the limitations on Tish's ability to use the Sec. 179 carryover in 2015?

d. How would your answer to Part a change if Tish's business taxable income (before the Sec. 179 expense and the 50% of SE tax deduction) were $37,000 in 2014 instead of $16,000?