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Section 179 Deduction allowed
Amina-54111 - 11/3/2019, 12:28 am

The answer states that her available 179 deduction is $9,000, however, it is indicated as being an incorrect answer. The answer further states that only the portion of the new property's basis paid by cash ($10,000) qualifies for the 179 deduction (which is similar to question 24). Why is the $9,000, which represents that business use portion incorrect?

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user-21492 - 11/6/2019, 3:52 pm

Q24 is different because he paid cash (boot) of $15k and increases the property basis qualifies for Section 179 deduction. only cash qualifies
15,000 x 90% = $13,500

This Q28 question is 90% of ($10k Paid(not cash) + $2k trade in) = $10,800

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