Costs of Tangible Personal Business Property Which Are Expensed Under

question 94

True/False

Costs of tangible personal business property which are expensed under Sec.179 are subject to recapture if the property is converted to nonbusiness use before the end of the MACRS recovery period.

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Definitions:

New Venture

Refers to a new business enterprise or startup that is typically characterized by high risk and potential for growth.

Replacement

Refers to the process of substituting an old asset with a new one to maintain or improve operational efficiency.

Payback Period

A capital budgeting technique that rates projects according to the speed with which they return invested money.

Cumulative Profits

The total amount of profit a company has earned over a specific period, adding together all net profits and losses to date.