179 and 50% of self-employment ta Tish deduct under Sec. 179 for 20 over to 2022? D21 depreciation deduction? ons on Tish's ability to use the Sec.
179 and 50% of self-employment ta Tish deduct under Sec. 179 for 20 over to 2022? D21 depreciation deduction? ons on Tish's ability to use the Sec.
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 43P
Related questions
Question
Transcribed Image Text:Sec. 179 Limitations and Carryovers. In 2021, Tish acquires and places into service in
her business 7-year MACRS property costing $40,000 and 5-year MACRS property cost-
ing $165,000. Tish elects Sec. 179 expensing for all of the properties' cost. Tish's taxable
income (before the Sec. 179 and 50% of self-employment tax deductions) is $160,000.
a. What amount may Tish deduct under Sec. 179 for 2021 for the properties? What
amount can she carry over to 2022?
b. What is Tish's total 2021 depreciation deduction?
c. What are the limitations on Tish's ability to use the Sec. 179 carryover in 2022?
d. How would your answers to Parts a, b, and c change if Tish's 2021 business taxable
income (before the Sec. 179 expense and the 50% of self-employment tax deductions)
was $300,000 instead of $160,000?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT