Tom has a successful business with $100,000 of taxable income before the election to expense in 2018.

Question:

Tom has a successful business with $100,000 of taxable income before the election to expense in 2018. He purchases one new asset in 2018, a new machine which is 7year MACRS property and costs $25,000. If you are Tom’s tax advisor, how would you advise Tom to treat the purchase for tax purposes in 2018? Why?

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