Section 179 Allows a Business, with Certain Restrictions, to Do

question 20

Multiple Choice

Section 179 allows a business, with certain restrictions, to do which of the following?

• A) Offset the tax liability with the cost of the asset in the year of purchase.
• B) Expense the asset immediately in the year of purchase.
• C) Expense the asset using double declining balance depreciation during the life of the asset.
• D) Get a government grant to purchase the asset.

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Definitions:

Negligent Performance

An inadequate or unsatisfactory execution of tasks or duties resulting from a failure to exercise the appropriate care or skill.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, often applicable in trustee-beneficiary and advisor-client relationships.

Breach

An act of breaking or failing to observe a law, agreement, or code of conduct.

Principal's Termination

The end of an agency relationship by the decision of the principal, who is the individual or entity that has empowered another to act on their behalf.