McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.
If an amount is zero, enter "0".
a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024.
§ 179 expense deduction for 2023: $
§ 179 carryover to 2024: $
5,600 ?
206,400
b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3.
Additional first-year depreciation for 2023:
MACRS cost recovery for 2023:
Total cost recovery for 2023:
X