Chad, a sole proprietor of a private boat charter business, purchased and placed into service eight used boats for $260,000 each on May 1, Year 1. Chad’s taxable business income for Year 1 is $400,000. Assuming the limit is $500,000 and the phase-out threshold is $2,010,000, what is the maximum amount, if any, that Chad can deduct under Section 179 for Year 1?

Multiple Choice

• $2,600,000

• $800,000

• $900,000

• $1,000,000

Answer rating: 100% (QA)

Bonus depreciation helps in taking 100 deduction of cost in the first year of the asset available ... View the full answer