Reference no: EM132590969

Question - Gilbert is the proprietor of a small business. In 2019, the business income, before consideration of any cost recovery or § 179 deduction, is $2,000,000. Gilbert spends $2,870,000 on new seven-year class assets (use half year convention), and elects to take the § 179 deduction on them. He elects not to take additional first-year depreciation. Gilbert's cost recovery deduction for 2019, for 5-year assets (not purchased this year), is $780,000.

If an amount is zero, enter "0". If required, round your intermediate computations and final answers to the nearest dollar.

a. What is the tentative amount of Gilbert's overall § 179 deduction for the seven-year class assets before any income limitation?

b. Gilbert's cost recovery amount (excluding any § 179 deduction) for the seven-year class assets is $.

c. The total amount of Gilbert's § 179 deduction for the seven-year class assets after any income limitation is $.

d. Gilbert's total cost recovery depreciation deduction (including any § 179 deduction) is $.

e. What is the amount of any § 179 carryforward?