Question

which of the following type of property is not elegible for the section 179 expensin election?...

which of the following type of property is not elegible for the section 179 expensin election?
a. property depreciable under irc section 168
b. section 1245 property including off-the-shelf computer software
c. land impovements
d. property used in a trade or business
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Homework Answers

Answer #1

To qualify for Section 179 deduction, the asset must be:

  • Tangible;
  • Purchased, not leased, for use in your trade or business;
  • Used more than 50% in your trade or business;
  • Placed in service (purchased, acquired, or converted to business use) during the current tax year; and
  • Acquired from a non-related party.

You cannot claim a Section 179 deduction for:

  • Real property (e.g., land, building, sidewalks, landscaping, parking lots);
  • Income-producing real property;
  • Investment property;
  • Assets used 50% or less by your business;

Correct answer is c. Land Improvements

  • Assets acquired in a tax-free exchange or from a person or entity with whom you share a close relationship as specified by the IRS; or
  • Intangible assets such as copyrights or patents.
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