Election to Expense Assets (LO. 5) Firefly, Inc., acquires business equipment in July 2019 for $2,565,000. Assume that Firefly elects not to claim bonus depreciation. a. Firefly's maximum Section 179 deduction for 2019 is $ b. Any portion of the annual limit not deducted in 2019 is lost forever . c. The depreciable basis of the equipment is $| Feedback Check My Work Section 179 - Under this provision, taxpayers are allowed to expense up to $1,020,000 (2019) of the cost of tangible personal property used in a trade or business. Amounts expensed under this provision reduce the depreciable basis of the property. The amount of the annual deduction limit is reduced when purchases of qualifying property exceed $2,550,000 in 2019. In addition, the deductible amount cannot exceed the taxable income from the active conduct of all the taxpayer's trade or business activities