Michael Sima, a sole proprietor craftsman, purchased an amount of equipment in the current year that exceeded the maximum allowable § 179 depreciation election limit by $20,000. Sima’s total purchases of property placed in service in the current year did not exceed the limit imposed by § 179. All of the property (including the equipment) was purchased in November of the current year, and Sima elected to depreciate the maximum amount of equipment under § 179- Sima had bottom-line Schedule C income of $50,000 in the current year. Which method may Sima use to depreciate the remaining equipment in the current year?
a. Sima may not depreciate any additional equipment other than the § 179 maximum in the current year and must carry forward the excess amount to use in the following taxable year.
b. MACRS half-year convention for personal property.
c. MACRS mid-quarter convention for personal property'.
d. Straight-line, mid-month convention over 27.5 years for real property'.