Question
Olga is the proprietor of a small business. In 2019, the business's income, before consideration of any cost recovery or 179 deduction, is $250,000. Olga
Olga is the proprietor of a small business. In 2019, the business's income, before consideration of any cost recovery or 179 deduction, is $250,000.
Olga spends $620,000 on new 7-year class assets and elects to take the 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2019, except for the cost recovery with respect to the new 7-year assets, is $95,000.
a. What is the tentative amount of Olga's overall 179 deduction for the seven-year class assets before any income limitation?
b. What is the total amount of Olga's 179 deduction for the seven-year class assets after any income limitation?
c. What is Olga's total cost recovery depreciation deduction (including any 179 deduction)?
d. What is the amount of any 179 carryforward?
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