A project requires the purchase of new equipment at a cost of $12,000, which will be depreciated over the life of the asset. A further $8000 spent on transport and installation will be added to the purchase price of the equipment for depreciation purposes, and $4000 will be spent on advertising and other operating expenditure to get the project up and running.

Excluding depreciation, what is the amount that will be claimed as a tax deduction in Year 1?