On January 1,2013,Sandy,a sole proprietor,purchased for use in her business a used production machine 7-year property)at a cost of $40,000.Sandy does not purchase any other property during 2013 and has net income from her business of $80,000.If the standard recovery period table would allow $5,716 of depreciation expense on the $40,000 of equipment purchased in 2013,what is Sandy's maximum depreciation deduction,including bonus depreciation and the Section 179 election to expense,for 2013?

Question

Quizplus · Accepted Answer

Sandy can take advantage of the Section 179 election to expense the entire cost of the equipment ($40,000) in 2013, as her net income is sufficient to cover this deduction. Bonus depreciation is not applicable to used property in 2013.

On January 1,2013,Sandy,a Sole Proprietor,purchased for Use in Her Business