Aaron has a successful business with $50,000 of income. He purchased one new asset, a new machine that is 7-year MACRS property, with a cost of $7,000. Of the options available for tax depreciation, what is the largest write-off Aaron could legally take this year?

Answer for the question:

Aaron has a successful business with $50,000 of income. He purchased one new asset, a new machine that is 7-year MACRS property, with a cost of $7,000. Of the options available for tax depreciation, what is the largest write-off Aaron could legally take this year?

is given below.

Explanation:

9 c.Non residental real Property is depreciated over 39 years.

Because residental real Property is depreciated over 27.5 years.

$7,000

Explanation: According to the question, Aaron purchased one new asset, a new machine that is 7-year MACRS property, with a cost of $7,000.

Aaron can legally write off the asset in the year of purchase making the highest write off for the year $7,000

answer; swot analysis;