On May 10, 2022, Larry purchased and placed in service a pickup truck (GVWR 7,000 lbs. and a 7-ft. bed). The selling price was $12,000. He received a trade-in allowance of $2,000 on his old truck and received a loan for the $10,000 balance. He had an adjusted basis of $3,000 in his old truck. He used the old and new truck 90% for business. Taxable income from his business for 2022 (before the Sec. 179 election) was $50,000. Larry did not place any other assets in service in 2022. What amount may Larry take as a Sec. 179 deduction in 2022?

Answer rating: 100% (QA)

To determine the amount of Section 179 deduction that Larry may take in 2022 we need to consider the ... View the full answer