T or F The 179 deduction can exceed 1,020,000 in 2019 if the taxpayer has a 179 amount that exceeded the taxable income limitation in the prior year 2: Alicia was involved in an automobile accident in 2019. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicia’s AGI is $50,000 (before considering the loss), determine her itemized deduction for the casualty loss. a: $34,000; $0 b: $50,000; $0 c: $34,000; $4,500 d: $26,000; $5,700 e: none of these

1. False

2.  c: $34,000; $4,500

Explanation:

1. The given statement is false

As for the 179 deduction, the maximum amount allowed is $1,000,000 and it cannot be greater than this in any of the case

2. Particulars          Business     Personal

Cost                         $24,000      $16,000

                      ($40,000 × 60%)   ($40,000 × 40%)

Less: depreciation   -$8,000        $0

Basis                       $16,000         $16,000

Fair market value   $12,000         $8,000

Loss:                       $16,000           $8,000

AGI before loss                              $50,000

Less: Business loss                        -$16,000

AGI                                                    $34,000

Personal casuality loss                    $8,000

Less: $100 floor                                -$100

ANd 10% of AGI                                 -$3400

Deduction itemized                          $4,500

Hence, the correct option is c.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.