Olga is the proprietor of a small business. In 2015, the business’s income, before consideration of any cost recovery or § 179 deduction, is $250,000.
Olga spends $600,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga’s cost recovery deduction for 2015, except for the cost recovery with respect to the new 7-year assets, is $95,000.
What is the tentative amount of Olga’s overall § 179 deduction for the seven-year class assets before any income limitation? $