Asked by Abigail Bailey on Jun 26, 2024
Verified
The §179 expense deduction is limited to earned income.
§179 Expense Deduction
The §179 expense deduction allows businesses to deduct the full purchase price of qualifying equipment or software purchased or financed during the tax year, subject to certain limits.
Earned Income
Income derived from active participation in a business or wage-earning employment.
- Ascertain deductible business costs and recognize the limitations imposed by IRS standards.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
True
Explanation :
The §179 expense deduction, which allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, is indeed limited by the taxpayer's business income. This means the deduction cannot exceed the net income from the business activities.
Learning Objectives
- Ascertain deductible business costs and recognize the limitations imposed by IRS standards.
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