Question

taxpayers may expense the cost of depreciable personal property placed in service during the year and used in a trade or business in an amount up to a maximum of $2,500,000 annually.

true or false

Answer 1

Q- taxpayers may expense the cost of deprecia personal property placed in service during the year and used in a trade or business in an amount up to a maximum of $2,500,000 annually.

Ans: False

true or false

Treatment as expenses

A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.

Limitations(1)Dollar limitation

The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $1,000,000.

Reduction in limitation

For any taxable year shall be reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during such taxable year exceeds $2,500,000.