Election to Expense Assets (LO. 5) In 2019, Terrell, Inc., purchases machinery costing $2,578,000. Its 2019 taxable income before considering the Section 179 deduction is $1,100,000. Assume that Terrell elects not to claim bonus depreciation. a. Terrell's maximum Section 179 deduction in 2019 is $ b. The depreciable basis of the equipment is 1x. 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. Election to Expense Assets (LO. 5) In 2019, Terrell, Inc., purchases machinery costing $2,578,000. Its 2019 taxable income before considering the Section 179 deduction is $1,100,000. Assume that Terrell elects not to claim bonus depreciation. a. Terrell's maximum Section 179 deduction in 2019 is $ b. The depreciable basis of the equipment is 1x. 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