Question

The § 179 expensing election is a semiannual election that applies to the acquisition cost of property placed in service that year.

a. True
b. False

Answer 1

The § 179 expensing election is not a semiannual election; it is an annual election that allows businesses to deduct the cost of qualifying property in the year it is placed in service. option (A)

Step-by-step explanation:

The statement that the § 179 expensing election is a semiannual election is false. The § 179 expensing election is an annual election that allows businesses to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost to be capitalized and depreciated.

This deduction is intended for small to medium-sized businesses and can be a significant tax advantage. It applies to property that is purchased and placed in service during the tax year for which the election is made. The maximum deduction and qualifying property types can change yearly based on tax laws.