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30 May, 06:02

In 2018, Gail had a § 179 deduction carryover of $30,000. In 2019, she elected § 179 for an asset acquired at a cost of $115,000. Gail's § 179 business income limitation for 2019 is $140,000. Determine Gail's § 179 deduction for 2019.

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  1. 30 May, 09:20
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    The answer is: Gail's § 179 deduction for 2019 is $145,000

    Explanation:

    § 179 of the IRS Code, allows taxpayer to either:

    deduct the cost of certain types of property from gross income taxes as an expense allow the cost of the property to be capitalized and depreciated.

    If Gail had a § 179 deduction carryover of $30,000 and then she acquired an asset for $115,000, her total § 179 deduction for 2019 is $30,000 + $115,000 = $145,000
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