Question

For personal property placed in service in 2014, the § 179 maximum deduction is limited to __________.

a) $15,000
b) $25,000
c) $50,000
d) $75,000

Answer 1

For personal property placed into service in 2014, the Section 179 maximum deduction was $500,000. This deduction phased out dollar-for-dollar after $2 million in purchases.

Step-by-step explanation:

For personal property placed in service in 2014, the § 179 maximum deduction was limited to $500,000. This deduction phased out dollar-for-dollar after $2 million in purchases.This deduction allowed businesses to or deduct the full cost of qualifying equipment and software purchased or financed during the tax year up to this limit, given that the total amount of the equipment purchased did not exceed $2 million.

After reaching this threshold, the deduction began to phase out on a dollar-for-dollar basis. It's important to note that these figures can change annually according to tax laws and inflation adjustments.