In Febuary of 2016, Jane is trying to decide if she should purchase a new vehicle for her business, ABC, Inc. Assume that she will purchase the vehicle in April, 2016 and also assume that no other assets will be purchased in 2016.
If Jane purchases a new BMW for $100,000, what is the maximum amount that Jame may deduct in 2016? Carol plans to drive the BMW 82% of the time for business. Jane elects to take the additional first-year depreciation.
If Jane purchases a Outback (an SUV with GVRW > 6,000) in March, 2017, for $66.,800, what is the maximum amount that Jane may deduct in 2017? Jane plans to drive the Explorer 100% of the time for business. Assume that no other assets will be purchased in 2017.