A business purchases equipment for $1,000,000 in Year 1. They want to maximize Year 1 deductions. Assuming they have sufficient income and the equipment qualifies, what is the optimal strategy?

1. Goal: Maximize deduction.<br/>2. Tools: Section 179 (Expensing) and Bonus Depreciation.<br/>3. Ordering: Section 179 is usually applied first to specific assets, then Bonus Depreciation applies to the remaining basis of qualified property.<br/>4. Result: Use both to expense 100% if allowed.