Brett started a new construction business in April 2018. In connection with the new business, he purchased a new backhoe for $60,000 in June 2018 and immediately placed it in service.

The new business is struggling and expecting to show a loss for 2018. Brett is considering expensing the $60,000 cost of the backhoe under 179 on the 2018 tax return. Brett has been awarded a large project for 2019, and will show a substantial profit (over $100,000) for the year ending 12/31/2019.

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?