Evaluate the appropriateness of brett''s plan

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Brett started a new construction business in August 2014. In connection with the new business, he purchased a new backhoe for $70,000 in September of 2014. The new business is struggling and expecting to show a loss for 2014. Brett is considering expensing the $70,000 cost of the backhoe under §179 on the 2014 tax return. Brett has been awarded a large project for 2015, and expects to show a substantial profit for the year ending 12/31/2015. Evaluate the appropriateness of Brett's plan. Explain your position.

Reference no: EM13304274

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