Taxpayers choosing the Section 179 election to expense: a. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit. b. May not carry over any amounts elected which are not allowed because of taxable income limitations. c. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense. d. May expense a $125,000 automobile so long as it is used 100 percent for business.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Taxpayers choosing the Section 179 election to expense:
a. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified
limit.
b. May not carry over any amounts elected which are not allowed because of taxable income limitations.
c. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense.
Od. May expense a $125,000 automobile so long as it is used 100 percent for business.
Transcribed Image Text:Taxpayers choosing the Section 179 election to expense: a. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit. b. May not carry over any amounts elected which are not allowed because of taxable income limitations. c. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense. Od. May expense a $125,000 automobile so long as it is used 100 percent for business.
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