John Smits is married. He and his wife make separate contributions. In this taxable year, John Smits purchased a farm machine for $ 2,000,000 and put it into service. His wife runs her own business and purchased and commissioned a qualified business equipment worth $ 30,000. The “combined dollar limit” is $ 470,000.

As determined by the IRS in its publications 534 and 946, determine the following for each case:

- the amount of depreciation allowed for this taxable year if section 179 is not considered.

- the amount of depreciation allowed for this taxable year if section 179 is considered.

Answer rating: 100% (QA)

ANSWER a Depreciation Allowable if 179 not considered The Depreciation ... View the full answer