Rolf owns a package delivery business. During the current year, he purchased and placed into service $1,050,000 worth of equipment. Rolf is in the highest marginal income tax bracket this year and expects to be in that bracket for two more years. After that, he plans to semi-retire but keep the business open for another three to five years. He expects to drop into the lower marginal brackets when he semi-retires. What advice would you give Rolf regarding the use of Section 179 and cost recovery deductions?

A)

Utilize Section 197 and elect the amortization method

B)

Forgo Section 179 and bonus depreciation and use the MACRS table

C)

Forgo Section 179 and bonus depreciation and elect the straight-line method

D)

Utilize the bonus depreciation provision