Section 179

Test Your Knowledge
Quiz

Take our quiz to test your understanding of the Section 179 tax deduction, and get instant feedback on your answers to check your knowledge.

1. What is the 2018 Section 179 deduction limit?

Sorry, that is not correct. In 2018, the deduction limit for Section 179 was raised to $1 million.

Yes, you are correct! In 2018, the deduction limit for Section 179 is $1 million.

2. Which of the following equipment types do NOT qualify for Section 179?

No, I'm sorry. The correct answer is custom-designed software. To qualify for a tax deduction under Section 179, software must be carried on the books as an asset. This often is the case for purchased, off-the-shelf software. Custom-designed software, on the other hand, often is treated as a business expense and may not qualify for the Section 179 deduction.

Yes, you are correct. To qualify for a tax deduction under Section 179, software must be carried on the books as an asset. This often is the case for purchased, off-the-shelf software. Custom-designed software, on the other hand, often is treated as a business expense and may not qualify for the Section 179 deduction.

3. What is the max spending cap for Section 179 in 2018?

Sorry, that is wrong. The maximum spending cap for Section 179 in 2018 is $2.5 million.

Yes, way to go! The maximum spending cap for Section 179 in 2018 is $2.5 million.

4. Equipment can be financed in 2018, but delivered in 2019, to take advantage of the Section 179 tax incentive for 2018.

No, I'm sorry. To qualify for a tax deduction under Section 179, equipment must be purchased, delivered and put into service before Dec. 31, 2018.

Yes, you are correct. To qualify for a tax deduction under Section 179, equipment must be purchased, delivered and put into service before Dec. 31, 2018.

5. You can combine Section 179 with bonus depreciation in 2018.

Sorry, that is the wrong answer. In 2018 you can combine Section 179 with bonus depreciation.

Correct! In 2018 you can combine Section 179 with bonus depreciation.

6. At a minimum, what percentage of business use is required for equipment to qualify for the full Section 179 deduction?

I'm sorry, your answer is incorrect. To qualify for the full Section 179 deduction, equipment must be used 50% for business purposes.

Yes, way to go! To qualify for the full Section 179 deduction, equipment must be used 50% for business purposes.

7. Bonus depreciation allows for a deduction on both new and used equipment.

That is not correct. Bonus depreciation can be taken on new and used equipment.

You are correct! Bonus depreciation can be taken on new and used equipment.

8. What is the IRS form required to submit a Section 179 filing?

No, the correct form to submit a Section 179 filing is IRS Form 4562 (Depreciation and Amortization).

Yes! The correct answer is IRS Form 4562 (Depreciation and Amortization).

9. Can leases qualify for Section 179?

No, that is not correct. Leases may qualify for a tax deduction under Section 179.

Correct! Leases may qualify for a tax deduction under Section 179.

10. Which of the following equipment qualifies for Section 179?

Sorry, not quite. All of the above equipment qualifies for a tax deduction under Section 179.

Yes, you are right! All of the above equipment qualifies for a tax deduction under Section 179.



Contact your tax advisor to verify tax or accounting issues or visit irs.gov for details.

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