Question

McKenzie purchased a qualifying equipment for his business at $212,00 in 2018. His taxable income for...

McKenzie purchased a qualifying equipment for his business at $212,00 in 2018. His taxable income for the year was $5,600 before considering any s.179 deductions. What will be his s. 179 expense deductions for 2018 and any carryover to 2019?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

McKenzie s. 179 expense deductions for 2018 =$5,600

Carryover deduction = $2,12,000 - $5,600 = $2,06,400

As per s. 179 deduction allows the business to deduct the full purchase price of the qualifying equipment purchased during the year subject to a limit of $ 10,00,000. However deductable amount is up to taxable income and balance deduction can be carry forward to next year.

Since the equipment value is less than $10,00,00 and taxable income is $5,600 , balance deduction of $2,06,400 can be carryover to 2019.

Thanks,

Let me know if you have any doubts.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
McKenzie purchased qualifying equipment for his business that cost $298,900 in 2018. The taxable income of...
McKenzie purchased qualifying equipment for his business that cost $298,900 in 2018. The taxable income of the business for the year is $79,200 before consideration of any § 179 deduction. a. McKenzie's § 179 expense deduction is $_______ for 2018. His § 179 carryover to 2019 is $._______? b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? Hint: See Concept Summary 8.5. McKenzie's § 179 expense deduction is $_________ for 2018....
Lanyard purchased office equipment for use in his business (7 year property). He paid 100,000 for...
Lanyard purchased office equipment for use in his business (7 year property). He paid 100,000 for the equipment on july 1, 2017. Lanyard did not purchase any other property during the year. for 2017, his business ha a net income of 350,000, before depreciation and before considering the election to expense. A) what is the maximum amount that lanyard can deduct in 2017 under the election to expense? B) What is the total depreciation (regular depreciation under the amount allowed...
a. Colonel Trautman runs a small demolition business with taxable income before any 179 expense of...
a. Colonel Trautman runs a small demolition business with taxable income before any 179 expense of $450,000. He acquired a machine for the business on Feb 2, 2019 for $85,000, and an office building on April 1, 2019 for 22,000. Both of the assets are new and were put in service immediately. Calculation the maximum deductions he is allowed take related to cost recovery for these assets for the year. b. On Nov 12, 2020, Colonel Trautman sells the office...
A. Colonel Trautman runs a small demolition business with taxable income before any §179 expense of...
A. Colonel Trautman runs a small demolition business with taxable income before any §179 expense of $450,000. He acquired a machine for the business on February 2, 2019 for $85,000, and an office building on April 1, 2019 for $522,000. Both of the assets are new and were put in service immediately. Calculate the maximum deductions he is allowed take related to cost recovery for these assets for the year. B. On November 12, 2020, Colonel Trautman sells the office...
Assume that Timberline Corporation has 2018 taxable income of $282,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2018 taxable income of $282,000 for purposes of computing the §179 expense. It acquired the following assets in 2018: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) a-1. What is the maximum amount of §179 expense Timberline may deduct for 2018? a-2. What is Timberline’s §179 carryforward to 2019, if any? Furniture (7-year) December 1 $ 492,000 Computer equipment (5-year) February 28 132,000 Copier (5-year) July 15 72,000 Machinery (7-year)...
Assume that Timberline Corporation has 2018 taxable income of $250,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2018 taxable income of $250,000 for purposes of computing the §179 expense. It acquired the following assets in 2018: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Furniture (7-year) December 1 $ 460,000 Computer equipment (5-year) February 28 100,000 Copier (5-year) July 15 40,000 Machinery (7-year) May 22 490,000 Total $ 1,090,000 a-1. What is the maximum amount of §179 expense Timberline may deduct for 2018? a-2. What is Timberline’s...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179,...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset...
A small business has a taxable income of $95,650 this year, and has purchased $118,450 of...
A small business has a taxable income of $95,650 this year, and has purchased $118,450 of business equipment eligible for a section 179 deduction. What is the maximum section 179 deduction that can be taken? Taking this deduction, what is the year 1 depreciation for the equipment? What is the end-of-year book value? Use the MACRS rates listed below. Year 1: 20%; Year 2: 32%; Year 3: 19.2%; Year 4: 11.52%; Year 5: 11.52%; Year 6: 5.76%.
Cedar Corporation reported a net operating loss in 2018 of $25,000,000. In 2019, Cedar reported taxable...
Cedar Corporation reported a net operating loss in 2018 of $25,000,000. In 2019, Cedar reported taxable income before any NOL carryovers of $20,000,000. What is Cedar’s taxable income in 2019 and any NOL carryover to 2020?
Cedar Corporation reported a net operating loss in 2018 of $25,000,000. In 2019, Cedar reported taxable...
Cedar Corporation reported a net operating loss in 2018 of $25,000,000. In 2019, Cedar reported taxable income before any NOL carryovers of $20,000,000. What is Cedar’s taxable income in 2019 and any NOL carryover to 2020?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT