Question
Lydia is the proprietor of a small business. In 2015, the business income, before consideration of any cost recovery or 179 deduction, is $500,000. Lydia
Lydia is the proprietor of a small business. In 2015, the business income, before consideration of any cost recovery or 179 deduction, is $500,000. Lydia spends $205,000 on new seven-year class assets and elects to take the 179 deduction on them. She elects not to take additional first-year depreciation. Lydia's cost recovery deduction for 2015, except for the cost recovery with respect to the new seven-year assets, is $250,000.
What is the tentative amount of Lydia's overall 179 deduction for the seven-year class assets before any income limitation? $
c. The total amount of Lydia's 179 deduction for the seven-year class assets after any income limitation is $ .
d. Lydia's total cost recovery depreciation deduction (including any 179 deduction) is $ .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started