Andy has operated his moving company, Move-On, as a sole proprietorship for several years. In 2016, Move-On

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Andy has operated his moving company, Move-On, as a sole proprietorship for several years. In 2016, Move-On placed into service $480,000 of property qualifying for immediate expensing under § 179. In 2016, Andy also joined with another local mover to form and operate a storage company, The Attic LLC. Andy holds a 90% capital and profits interest in The Attic. In 2016, The Attic purchased and placed into service $2.2 million of property qualifying for expensing under § 179. Andy has $600,000 of taxable income from Move-On and a $750,000 share of ordinary income from his 90% ownership of The Attic, both before considering any § 179 expense. Assuming that Andy wants to maximize his current deductions (without sacrificing future deductions), how much can he elect to deduct under § 179?
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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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