Section 179 Allows Taxpayers to Immediately Expense Up to $500,000

question 93

True/False

Section 179 allows taxpayers to immediately expense up to $500,000 for 2016 of the cost of real and personal property placed into service in a trade or business,subject to limitations,.

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Definitions:

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.

Permanent/Temporary

Describes assets or accounts within financial contexts; permanent assets or accounts are long-term and not expected to be converted into cash within a year, while temporary accounts track revenues, expenses, and dividends and are closed at the end of the fiscal year.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodical basis rather than transaction by transaction.

Net Method

An accounting practice where purchase discounts are recorded immediately by reducing the price of the goods bought, assuming the discount will be taken.