Broadus, a calendar year taxpayer, purchased a total of $128,300 tangible personalty in 2018. Broadus' taxable income without regard to a Section 179 deduction was $92,600. Which of the following statements is true?
A) Broadus can elect to expense only $92,600 of the cost of the personalty under Section 179.
B) Broadus can elect to expense the $128,300 cost of the personalty under Section 179 but can deduct only $92,600 of the expense.
C) Broadus can elect to expense only $35,700 of the cost of the personalty under Section 179.
D) Broadus can elect to expense the $128,300 cost of the personalty under Section 179 but can deduct only $35,700 of the expense.

Question

Broadus, a calendar year taxpayer, purchased a total of $128,300 tangible personalty in 2018. Broadus' taxable income without regard to a Section 179 deduction was $92,600. Which of the following statements is true? 
A) Broadus can elect to expense only $92,600 of the cost of the personalty under Section 179.
B) Broadus can elect to expense the $128,300 cost of the personalty under Section 179 but can deduct only $92,600 of the expense.
C) Broadus can elect to expense only $35,700 of the cost of the personalty under Section 179.
D) Broadus can elect to expense the $128,300 cost of the personalty under Section 179 but can deduct only $35,700 of the expense.

Quizplus · Accepted Answer

Broadus can elect to expense the full cost of $128,300 under Section 179, but the deduction is limited to the taxable income of $92,600.

Broadus, a Calendar Year Taxpayer, Purchased a Total of $128,300