CPA Study Group
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?
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