Question: How does the 1 7 9 immediate expensing deduction affect the computation of MACRS cost recovery? The cost recovery deduction is taken afterbefore the 1

How does the 179 immediate expensing deduction affect the computation of MACRS cost recovery?
The cost recovery deduction is taken
afterbefore
the 179 deduction. Therefore, the basis of the property for cost recovery purposes is
reducedincreasednot affected
by the 179 amount. In addition, the business income limitation
doesdoes not
affect basis.

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