Calendar-year taxpayer

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In 2010, Clair, a calendar-year taxpayer, purchased business equipment (7-year property) for $700,000. The property was placed in service during 2010 (and is being used exclusively in Clair's extremely profitable business). No other personal property was (or will be) purchased by Clair in 2010. What is the most that Clair may deduct in 2010 under Section 179 of the Code (e.g., ignore any potential deductions resulting from Bonus Deprecation or MACRS)?

a. $0

b. $500,000

c. $700,000

d. $2,000,000

Reference no: EM13130976

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