Question

4. Under final regulations issued in 2013, which of the following is a requirement for the de minimis rule, which allows taxpayers not to capitalize amounts paid for the acquisition or production of a unit of property?

A. The total aggregate of amounts paid and not capitalized for the taxable year are less than or equal to one-tenth percent of the taxpayer’s gross receipts.

B. The taxpayer has, at the beginning of the taxable year, accounting procedures treating as an expense for nontax purposes the amounts paid for property costing less than a certain dollar amount.

C. The total aggregate of amounts paid and not capitalized for the taxable year does not distort income.

5. Which one of the following is allowing taxpayers to ‘not capitalize’ items acquired, in essence keeping assets off the balance sheet and depreciation schedules?

A. GAAP Accounting rules.

B. The Routine Maintenance Safe Harbor.

C. The Election to Expense Code.

6. After a decade of seemingly annual increases to the maximum §179 deduction, for 2020 the maximum deduction is which of the following?

A. $500,000.

B. $1,000,000.

C. $1,040,000.

Answer 1

4. Under final regulations issued in 2013, which of the following is a requirement for the de minimis rule, which allows taxpayers not to capitalize amounts paid for the acquisition or production of a unit of property?

ans B. The taxpayer has, at the beginning of the taxable year, accounting procedures treating as an expense for nontax purposes the amounts paid for property costing less than a certain dollar amount.

5.Which one of the following is allowing taxpayers to ‘not capitalize’ items acquired, in essence keeping assets off the balance sheet and depreciation schedules?

ans;B. The Routine Maintenance Safe Harbor.

6.After a decade of seemingly annual increases to the maximum §179 deduction, for 2020 the maximum deduction is which of the following?

ans C The maximum Section 179 deduction per year is $1,040,000.