Question: How does the 179 immediate expensing deduction affect the computation of MACRS cost recovery? The cost recovery deduction is taken the 179 deduction. Therefore, the

How does the 179 immediate expensing deduction affect the computation of MACRS cost recovery?

The cost recovery deduction is taken

the 179 deduction. Therefore, the basis of the property for cost recovery purposes is

by the 179 amount. In addition, the business income limitation

affect basis.

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