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During the year, Cory purchased a log skidder (7-year property) for $55,000 for his business. Assume that he has income from his business of $30,000, and he and his wife have combined salaries and wages income of $40,000. What is the maximum deduction he can take for his business in relation to the log skidder purchase?

Respuesta :

lazicah

Answer:

$55,000

Explanation:

This is the maximum amount he can deduct

jepessoa

Answer:

$55,000

Explanation:

The Tax Cuts and Jobs Act increased the amount that a business can directly deduct as a Section 179 expense from 50% to 100% of the cost of qualifying assets. So in this case, Cory should be able to expense the entire cost of the log skidder. Section 179 deductions can be very useful for small businesses since it lowers taxes and encourages them to purchases more equipment.

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