Mike owns all shares of Dogget, Inc., and he is a 40% shareholder of Thinkers, Inc., both S corporations. During the current tax year, Dogget had $3,000,000 in net business income and purchased $1,000,000 of equipment ($300,000 section 179 deduction recognized). Thinkers had $1,500,000 in net business income and purchased $750,000 of equipment ($400,000 section 179 deduction recognized).

What amount of section 179 deduction can Mike deduct on his 2022 personal tax return?

a) $ 280,000 b) $ 460,000 c) $ 700,000 d) $1,080,000