Question

During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $51,000 before any cost recovery. What is the maximum amount that Travis may deduct under the election to expense?

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	a.	$0
	b.	$13,000
	c.	$25,000
	d.	$500,000
	e.	None of the above

An asset (not an automobile) placed in service in June 2019 has a depreciable basis of $35,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2019?

	a.	$7,000
	b.	$24,500
	c.	$17,500
	d.	$21,000
	e.	$35,000

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $535,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2019?

	a.	$267,500
	b.	$107,000
	c.	$535,000
	d.	$374,500
	e.	$321,000

Answer 1

1) For the Assets purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, maximum $13000 may deduct under the election to expense.

Assuming 100% cost is allowed as expenses upon satisfying some conditions.

2) The maximum amount of cost that can be deducted in 2019 is $ 7000 for next 5years.

3)  The maximum amount of cost that can be deducted in 2019 is $ 107000 for next 5years.