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Dain’s Diamond Bit Drilling purchased the following assets this year. (2018) Purchase Original Asset Date Basis...

Dain’s Diamond Bit Drilling purchased the following assets this year. (2018)

Purchase Original
Asset Date Basis
Drill bits (5-year) Feb-22 $ 88,500
Drill bits (5-year) Sep-12 101,250
Commercial building Apr-12 251,000

Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonus depreciation). 2018

c. If the February drill bits’ original basis was $2,384,000, what is the maximum amount of §179 expense Dain may deduct for the year?

§179 expense
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Answer #1

Maximum amount of $179 expense is 2384000-88500=2295500*10months/12=$1912917

The total amount of loses is compensate on the proportion of months vested by Dian holding.

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