Final answer:
The claim that the § 179 deduction can exceed $25,000 in 2014 if the taxpayer had a § 179 amount which exceeded the taxable income limitation in the prior year is false. The deduction is limited to the business's taxable income, with any excess carried over to the next year.
Step-by-step explanation:
The statement regarding the § 179 deduction is False. The § 179 deduction allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, meaning that if you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income. However, this deduction is limited to the business's taxable income for the year; it cannot create a loss. If a taxpayer's § 179 expenses exceed their business income, the excess amount can be carried over to the next year, but it does not increase the maximum deduction limits of the subsequent year beyond the set threshold.