Tax situation - your tax client purchased these items in 2020 for his landscaping business; a new tractor for $50,000 on May 1, new tractor implements for $10,000 on May 1, a new trailer for $12,000 on June 30 (all 7 yr equipment) and an SUV for $68,000 on June 30. The SUV weights over 6,000 pounds and is used 100% for business. Your client wants to know what his options are for depreciating this equipment.

1. What would be the maximum amount of depreciation he could elect to take for 2020? Explain/show how you calculated this amount.
2. What is the minimum depreciation he could take in 2020? Explain/show how you calculated this amount
3. What are the advantages and disadvantages of taking the minimum and maximum?
4. What is your recommendation, give your reasoning.