On June 30, 2018, Temika purchased office furniture and fixtures (7-year property) costing $800,000 and technology equipment (5-year property) with a cost of $450,000. She uses Sec. 179, but she does not claim bonus depreciation. Her business income is $1,190,000 without considering Sec. 179. How should she allocate the Sec. 179 election in order to maximize her total cost recovery deductions
(depreciation and Sec. 179) for 2018?
What will be an ideal response?
If Temika assigns the Sec. 179 deduction first to the office furniture, then to the computers:
If Temika assigns the Sec. 179 deduction first to the technology equipment, then to the furniture:
Temika should allocate the Sec. 179 deduction first to the office furniture to maximize her cost recovery deductions.
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