Caitlyn Purchases and Places in Service Property Costing $450,000 in 2016

Multiple Choice

Caitlyn purchases and places in service property costing $450,000 in 2016. She wants to elect the maximum Sec. 179 deduction allowed. The property does not qualify for bonus depreciation. Her business income is $400,000. What is the amount of her allowable Sec. 179 deduction and carryover, if any?

A) $$\begin{array} { | l | l | } \hline 179 \text { deduction } & \text { Carryover } \\\hline \$ 500,000 & 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline 179 \text { deduction } & \text { Carryover } \\\hline \$ 450,000 & 0 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline 179 \text { deduction } & \text { Carryover } \\\hline \$ 400,000 & \$ 50,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline 179 \text { deduction } & \text { Carryover } \\\hline \$ 400,000 & \$ 100,000 \\\hline\end{array}$$