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

About this episode

In this episode, Ran Chen discusses the limitations and calculations related to the Section 179 expensing for the Enrolled Agent Exam.

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

People in this episode

Host: Ran Chen

Topics covered

• Enrolled Agent Exam
• Section 179
• tax deductions
• business income
• asset purchases
• real property improvements

Keywords

• Section 179
• taxable income
• deduction limits
• asset purchases
• real property improvements
• exam preparation
• business expenses

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

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