Question
Acme Inc., an S-Corp is one of several passthrough businesses owned by Jane Jetson. She estimates that Acmes taxable income before any depreciation or section
Acme Inc., an S-Corp is one of several passthrough businesses owned by Jane Jetson. She estimates that Acmes taxable income before any depreciation or section 179 deductions will be $80,000 in 2020. Assume that she is considering having Acme purchase a piece of equipment before year end in 2020 that will cost $100,000. There were no other equipment purchases in 2020 for any of Janes businesses. The partner for the accounting firm that you work for suggested to Jane that she utilize bonus depreciation, rather than taking a $100,000 Section 179 deduction on this asset. What benefit is there to Jane Jetson in taking bonus depreciation over Section 179 on this asset?
Please correct and quickly it is urgent
thank you
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