Background

Grahamstarted his own landscaping business this year. He is interested in getting the greatest deduction he can on the capital-asset purchases he made this year. He provides you with the following list of purchases:

Item

Date of Purchase Cost

New riding lawnmower

5/4/xx $5,878

New zero-turn super mower

4/7/xx $15,989

Used backhoe

9/23/xx $12,090

New dump truck

10/8/xx $45,763

Used garage

11/9/xx $78,555

New computer (80% business use)

7/19/xx $1,249

Additional Information

The taxable income before any depreciation deduction for the year is $158,000.

Task

Using relevant tax laws and regulations, identify and explain the maximum depreciation deduction for Graham's business.