Which of the following conditions must be satisfied for a taxpayer to expense, in the year of purchase, under Internal Revenue Code Section 179, the cost of new or used tangible depreciable personal property?
I.
The property must be purchased for use in the taxpayer's active trade or business.
II.
The property must be purchased from an unrelated party.
Choice "D" is correct. To qualify for IRC Section 179, the property must be tangible personal property acquired by purchase from an unrelated party for use in the active conduct of a trade or business. Statements I and II are both correct statements concerning the criteria for property to qualify under IRC Section 179.
