On June 5, 2017, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2017, his business generated a net income of $945,780 before any § 179 immediate expense election.
a. Determine the maximum deductions that Javier can claim with respect to this asset in 2017 and 2018.
b. Complete Javier’s Form 4562 (page 1) for 2017. His Social Security number is 123-45-6789.