Enrolled Agent Exam [Part 2] 43, Section 179 Expensing — Limits

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The two primary limitations on the Section 179 deduction: the overall investment limit and the business taxable income limit. - How to calculate the reduction in the maximum Section 179 expense when total asset purchases exceed the phase-out threshold. - That the deduction is ultimately capped by the business's taxable income for the year, a common exam trap. - Any amount disallowed due to the taxable income limitation can be carried forward to subsequent tax years indefinitely. - Which types of real property improvements, such as HVAC and roofs, qualify for the Section 179 expense election. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep