Question

Required information [The following information applies to the questions displayed below.) Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions ($179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Office furniture (used) Placed In Service March 20 Basis $1,200,000 c. Woolard is concerned about future limitations on its $179 expense. How much $179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years? $179 expense

Answer 1

Year 2019 Section 179 - Maximum Phase out $ 1000000
The furniture does not qualify for Bonus depreciation
As per Question , Office furniture (used)
as on macrh 20 -- amount to $ 1200000
				Amount($)
Property Placed ( as above)-A				12,00,000
Threshold Limit Section 179				25,00,000
( phase out 2019 )- Maximum				-	( property value is less than Threshold limit
Maximum limite 2019 as pwe section 179-B				10,00,000
Rest part of Property (A-B)				2,00,000
As per MACRS depreciation rate 14.29%				28,580	(14.29% 0n 2,00,000)
Maximum section 179 deduction would be
Taxable Income as per question				2,40,000
Less - as per MACRS depreciation amount				28,580
Maximum section 179 deduction would be				2,11,420

Any carryforward amoutn woud be				Amount($)
Maximum limite 2019 as pwe section 179				10,00,000
Less
Maximum section 179 deduction would be				2,11,420
Any carryforward amoutn woud be				7,88,580