§179 expense is available for all of the following business assets except:
A. a bulldozer.
B. a phone system.
C. an apartment complex.
D. office furniture.
is it A
I selected A also.
To determine which business asset is not eligible for §179 expense, we need to understand what §179 expense is and how it applies to different assets.
§179 expense is a tax provision that allows businesses to deduct the full purchase price of qualifying assets during the year they are placed into service, rather than depreciating the cost over several years. This deduction is subject to certain limitations and is designed to encourage businesses to invest in new equipment.
Now, let's analyze each option to see which one does not qualify for §179 expense:
A. A bulldozer: A bulldozer is a piece of machinery used for construction or earth-moving projects. In general, heavy construction equipment like a bulldozer is eligible for §179 expense. Therefore, it is unlikely that the answer is A.
B. A phone system: A phone system is considered tangible business property and is generally eligible for §179 expense. So, it is unlikely that the answer is B.
C. An apartment complex: An apartment complex is a large and long-term investment property that is used for generating rental income. Rental properties, such as an apartment complex, are not considered qualifying assets for §179 expense. Therefore, the answer is likely C.
D. Office furniture: Office furniture, such as desks, chairs, and filing cabinets, is typically considered qualifying property for §179 expense. Therefore, it is unlikely that the answer is D.
Based on this analysis, the most probable answer is C. The apartment complex is not eligible for §179 expense, as it is a rental property rather than a qualifying business asset.