Brett started a new construction business in April 2016. In connection with the new business, he purchased
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Question:
Brett started a new construction business in April 2016. In connection with the new business, he purchased a new backhoe for $60,000 in June 2016. The new business is struggling and expecting to show a loss for 2016. Brett is considering expensing the $60,000 cost of the backhoe under §179 on the 2016 tax return. Brett has been awarded a large project for 2017, and expects to show a substantial profit for the year ending 12/31/2017.
Your response must fully address the following:
1. Evaluate the appropriateness of Brett’s plan.
2. Explain your position.
3. How do changes in tax law affect the appropriateness of Brett's plan?
Related Book For
College Algebra Graphs and Models
ISBN: 978-0321845405
5th edition
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna
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