Question
Assume that ACW Corporation has 2016 taxable income of $1,000,000 before the ?179 expense and acquired the following assets during 2016 (assume no bonus depreciation).
Assume that ACW Corporation has 2016 taxable income of $1,000,000 before the ?179 expense and acquired the following assets during 2016 (assume no bonus depreciation).
(a) What is the maximum amount of ?179 expense ACW may deduct for 2016?
(b) What is the maximum total depreciation expense that ACW may deduct in 2016 on the assets it placed in service in 2016?
Asset Machinery Computer equipment Delivery truck Qualified leasehold improvements Total Placed in Service September 12 February 10 August 21 April 2 Basis $ 470,000 70,000 93,000 380,000 $1,013,000
Step by Step Solution
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Section 179 expenses It is a special rule to recover the cost of tangible personal property Apart from depreciation expenses Section 179 allows to ded...
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Taxation Of Individuals 2017
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
8th Edition
978-1259729027, 1259729028, 978-1259548666
