In 2017, Theo purchases $16,000 of Section 179 property for use in his delivery business. During 2017,
Question:
In 2017, Theo purchases $16,000 of Section 179 property for use in his delivery business. During 2017, he has $12,000 in taxable income from his business. Assume that Theo elects not to claim bonus depreciation.
a. What is Theo's maximum Section 179 deduction in 2017? Explain
b. Theo's business taxable income for 2018 is $5,000. He purchases $1,000 of new Section 179 property in 2018. What is Theo's maximum Section 179 deduction for 2018?
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a The taxable income limitation applies to this scenario That is the maximum Section 17...View the full answer
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Related Book For 
Concepts In Federal Taxation 2018
ISBN: 9781337386074
25th Edition
Authors: Kevin E. Murphy, Mark Higgins
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