What is the tentative amount of gilberts overall deduction

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Reference no: EM131989183

Problem

TAX ACCOUNTING QUESTION

Gilbert is the proprietor of a small business. In 2016, the business income, before consideration of any cost recovery or $ 179 deduction, is $3,000,000. Gilbert spends $2,500,000 on new seven-year class assets and elects to take the $ 179 deduction on them. He elects not to take additional first-year depreciation. Gilbert's cost recovery deduction for 2016, except for the cost recovery with respect to the new seven-year assets, 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?

Reference no: EM131989183

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