Question

During the 2019 tax year, businesses may elect to immediately expense up to $(1) of tangible (2) property placed in service that year under Section 179. For any assets that are completely or partially expensed, the company must reduce the (3) of the asset before computing MACRS depreciation expense.

a. $100,000; Real; Cost
b. $25,000; Personal; Basis
c. $1,000,000; Tangible; Basis
d. $500,000; Intangible; Cost

Answer 1

The subject of this question is Business and it pertains to the tax regulations regarding the immediate expensing of tangible property under Section 179 in the 2019 tax year.

Step-by-step explanation:

The subject of this question is Business. It pertains to the tax regulations regarding the immediate expensing of tangible property under Section 179 in the 2019 tax year.

Out of the given options, the correct answer is c. $1,000,000; Tangible; Basis. This is because businesses may elect to immediately expense up to $1,000,000 of tangible property placed in service in the 2019 tax year, and for any assets that are expensed, the company must reduce the basis of the asset before calculating the MACRS depreciation expense.

This topic is relevant to understanding tax regulations and depreciation methods in the field of business.