On January 1, 2014, 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 2014 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 2014, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2014?

Question

Quizplus · Accepted Answer

Sandy can elect to expense the entire cost of the machine ($4,000) under Section 179, as it is less than the maximum allowable amount for 2014, which was $25,000.

On January 1, 2014, Sandy, a Sole Proprietor, Purchased for Use