On January 1,2017,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 2017 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 2017,what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation)for 2017?

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 Section 179 deduction limit for 2017.

On January 1,2017,Sandy,a Sole Proprietor,purchased for Use in Her Business