On January 1, 2018, Sandy, a sole proprietor, purchased for use in her business a used production machine (7-year property)at a cost of $4,000.Sandy does not purchase any other property during 2018 and has net income from her business of $80,000.If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2018, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation)for 2018?

Question

Quizplus · Accepted Answer

Sandy can elect to expense the entire cost of the machine ($4,000) under Section 179 since it is less than the maximum allowable deduction for 2018, which was $1,000,000.

On January 1, 2018, Sandy, a Sole Proprietor, Purchased for Use