Gillian, a married woman, is a sole proprietor who runs a landscaping business.

Question

Gillian, a married woman, is a sole proprietor who runs a landscaping business. Her net earnings from self-employment for 2013 were $85,000. Her husband’s nursing wages were $35,000. In March of 2013, she purchased a backhoe for a cost of $155,000. The total of all personal property she placed in service during the year was $250,000. What is Gillian’s maximum Code Sec. 179 expense deduction in 2013? Assume she does not elect Code Sec. 179 expense with respect to any of the other assets placed in service.

Explanation / Answer

Gillian’s maximum Code Sec. 179 expense deduction in 2013 = $ 250000 , worth dose not exceed $2000000

Note: As per section 179 for the year 2013 if taxpayer places assets worth exceeds $2000000, then taxpayer can claim deduction as follow:

Maximum deduction= $500000 - (Assets worth amount over $2000000)

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