Final answer:
The statement that property used for the production of income is not eligible for Sec. 179 expensing is generally b. false. Section 179 is meant to provide a tax break for businesses purchasing qualifying equipment and property for income-producing use, within certain limitations and rules.
Step-by-step explanation:
The student has asked about the eligibility of property for Sec. 179 expensing.
This is a matter of tax law, which falls under the broader category of business and economics knowledge.
Specifically, Section 179 of the Internal Revenue Code allows taxpayers 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.
The question concerns whether property used for the production of income is eligible for this type of expensing.
To clarify, the statement that 'Property used for the production of income is not eligible for Sec. 179 expensing' is generally b. false.
Section 179 is designed to give small and medium-sized businesses a tax break for purchasing qualifying equipment and property used in their trade or business, including property that is used for the production of income.
However, there are specific limitations and rules regarding what types of property qualify, and the taxpayer's business usage of such property can affect eligibility.
For example, certain real property improvements may qualify, while others may not.