Weston purchases equipment classified as 7-year property on January 5, 2017, at a cost of $80,000. Section 179 was not elected. He sells the equipment on February 12, 2018. What is Weston's 2017 depreciation deduction?

Question

Quizplus · Accepted Answer

The equipment is classified as 7-year property, so the MACRS depreciation method is used. For the 2017 tax year, Weston can deduct a half-year of depreciation, or $5,714 ($80,000/7 years x 6/12). Since Section 179 was not elected, Weston cannot expense the entire cost in the first year.

Weston Purchases Equipment Classified as 7-Year Property on January 5