Question

On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2019, his business generated a net income of $945,780 before any § 179 immediate expense election. Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost.

Complete Javier's Form 4562 (page 1) for 2019.
Note: For 2019, the maximum § 179 is $1,020,000 and the threshold amount is $2,550,000. If an amount is zero, enter "0". Enter amounts as positive numbers.

I NEED INFORMATION FOR LINE 11 ONLY. PLEASE HELP

Form 4562 Department of the Treasury Internal Revenue Service (99)	Depreciation and Amortization (Including Information on Listed Property) ▶ Attach to your tax return. ▶ Information about Form 4562 and its separate instructions is at www.irs.gov/form4562.	OMB No. 1545-0172
		2017 Attachment Sequence No. 179

Name(s) shown on return Javier Sanchez

Business or activity to which this form relates Sanchez Landscaping, LLC

Identifying number 123-45-6789

Part I	Election To Expense Certain Property Under Section 179
	Note: If you have any listed property, complete Part V before you complete Part I.

1	Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						1
2	Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						2
3	Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .						3
4	Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						4
5	Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions						5
6	(a) Description of property	(b) Cost (business use only)		(c) Elected cost
	Landscaping equipment
7	Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . .		7
8	Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . .						8
9	Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						9
10	Carryover of disallowed deduction from line 13 of your 2016 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						10
11	Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) . . . . . . .						11
12	Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . . . .						12
13	Carryover of disallowed deduction to 2018. Add lines 9 and 10, less line 12. . . . . .		▶	13
Note:	Don't use Part II or Part III below for listed property. Instead, use Part V.

Answer 1

Answer :- LINE 11 (As required in question)

Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)  

It is $1,020,000 because as instructions (Line 5 : Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. )

and Line 5 : Dollar limitation for tax year would be $1,020,000 because subtract line 4 from line 1.

Line 1 is $1,020,000 and Line 4 : (Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0) is $0

then subtracting Line 4 from Line 1 = $1,020,000

{ For Clarification

Line 1 - Maximum amount (see instructions) = $1,020,000

Line 4 : Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0 = $0

Line 5 : Dollar limitation for tax year would be $1,020,000 because subtract line 4 from line 1. = $1,020,000

Line 11 :Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) = $1,020,000 }