During 2016, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $500,000. What is the maximum amount that Travis may deduct under the election to expense?

Question

Quizplus · Accepted Answer

Under Section 179, Travis can elect to expense the full cost of the used equipment, which is $13,000, as long as it does not exceed his taxable income.

During 2016, Travis Purchases $13,000 of Used Manufacturing Equipment (7-Year