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Slide 13 – Question 2

Provision 13101
Section 179 Deduction
Question 2
In 2018, Jane Ash purchased, installed and
placed in service 8 new industrial baking
ovens in her bakery business. Total cost of
all 8 ovens is $2,610,000. Jane elects to
expense these ovens under IRC §179.
Compute Jane’s maximum IRC §179
deduction for 2018?

Tax Cuts and Jobs Act of 2017 | Course 73083a | SB/SE 13

Slide 14– Question 2 Answer

Provision 13101
Section 179 Deduction
Question 2 Answer:
$890,000. Total cost of the ovens are
$110,000 over the $2,500,000 threshold.
Jane must reduce her maximum IRC §179
deduction to $890,000 ($1,000,000
($1,000,000 dollar limitation) − $110,000
(over threshold amount)).

Tax Cuts and Jobs Act of 2017 | Course 73083a | SB/SE 14

TCJA – Depreciation Provisions Student Guide
05/2019 A-7 73083-102