Brett started a new construction business in April 2017. In connection with the new business, he purchased a new backhoe for $60,000 in June 2017 and immediately placed it in service.

The new business is struggling and expecting to show a loss for 2017. Brett is considering expensing the $60,000 cost of the backhoe under 179 on the 2017 tax return. Brett has been awarded a large project for 2018, and will show a substantial profit (over $100,000) for the year ending 12/31/2018.

Your response must fully address the following:

Evaluate the appropriateness of Bretts plan.

Explain your position.

How could changes in tax law affect the appropriateness of Brett's plan?