Eva purchased office equipment (7-year property) for use in her business. She paid $12,600 for the equipment on July 1, 2018. Eva did not purchase any other property during the year. For 2018, her business had net income of $6,000, before depreciation on the office equipment and before considering the election to expense. Eva elects out of bonus depreciation. a. What is the maximum amount that Eva can elect to expense in 2018 under Section 179? b. What is the total depreciation (regular depreciation and the amount allowed as a 2018 deduction under the election to expense) on the office equipment for 2018, assuming Eva uses the accelerated method under MACRS and claims the maximum amount allowable under the election to expense?
Eva purchased office equipment (7-year property) for use in her business. She paid $12,600 for the equipment on July 1, 2018. Eva did not purchase any other property during the year. For 2018, her business had net income of $6,000, before
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a. |
What is the maximum amount that Eva can elect to expense in 2018 under Section 179?
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b. |
What is the total depreciation (regular depreciation and the amount allowed as a 2018 deduction under the election to expense) on the office equipment for 2018, assuming Eva uses the accelerated method under MACRS and claims the maximum amount allowable under the election to expense?
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