Aaron has a successful business with $50,000 of income in 2019. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest amount Aaron can deduct in 2019 for the new asset?

Question

Quizplus · Accepted Answer

Under Section 179 of the IRS tax code, businesses can deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This means Aaron can deduct the full cost of the new 7-year MACRS property, which is $7,000, in 2019.

Aaron Has a Successful Business with $50,000 of Income in 2019