In July 2017,Cassie purchases equipment for $55,000 to be used in her business.Assuming Cassie has a small net loss from her business prior to the deduction,what is the maximum amount of cost recovery Cassie can deduct?

Question

Quizplus · Accepted Answer

Cassie can use Section 179 to deduct up to $25,000 of the equipment cost, and the remaining $30,000 can be depreciated using the MACRS 7-year property rate of 14.29% for the first year, resulting in a total deduction of $31,430.

In July 2017,Cassie Purchases Equipment for $55,000 to Be Used