Final answer:
Taxable income for purposes of Sec. 179 limited expensing is computed by including the MACRS deduction.
Step-by-step explanation:
The statement is True. Taxable income for purposes of Section 179 limited expensing includes the MACRS deduction. Section 179 of the Internal Revenue Code allows businesses to expense the cost of certain qualifying assets, such as equipment and machinery, up to a certain limit.
The MACRS deduction, on the other hand, is a method of depreciating the cost of assets over their useful life. By including the MACRS deduction in taxable income for Section 179, businesses can offset the deductions they take for the cost of assets.
For example, if a business purchases a piece of equipment for $10,000, they can choose to expense the entire cost under Section 179. However, by including the MACRS deduction, they can also take additional deductions over the useful life of the equipment.