Question

Any Sec. 179 expense amount that is carried forward is subject to the business income limitation in the carryforward year.

a. True
b. False

Answer 1

The statement is False. The Section 179 expense is not subject to the business income limitation in the carryforward year.

Step-by-step explanation:

The statement is False. The Section 179 expense is a tax deduction that allows businesses to deduct the full cost of qualifying assets in the year they are purchased and placed in service. Any Section 179 expense amount that is carried forward to future years is not subject to the business income limitation in the carryforward year. This means that the business can deduct the carried forward expenses without any limitation on their income.