Question

Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (Including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) In the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)

Answer 1

Answer The porchose a new car for use in her business the only business assets purchase calculate depreciation deductions 179 enpense under @ The wehicle 35000 - use percent 1000 The first for part should be ans 2018 - original basis of auto 23.5000 Macas depriecialeci raté 20%. 35000X20% full macys depsricicila exp 27000 Maximum auto depstacialoi = 10000 Deprcialiai deduction & ya : 7000

2019 = Original basis of auto = 35000 • MACRS depreciation rate - 327. - 35000X32'2 Full MACRS deprecalian op = 11 900 Maximum auto depsieciaba - 16000 Deprecicleas deduclori la 4001 = 11200 Explanations MACRS depreciaticá ranke = syeer prop - 1 year - 4 years Convention Full MACRS deprecialia exp- ()x(2) Marcimuon aceto depreciation Luxury auto limiz! Depreciation deducaleon for you - Lessor of (3) (6) (4)

I @ The vehicle cost 60,000 use is 100% 2018 - original basis of auto =80000 MACRS deprecichon seite -20% -800CX20% Full Macks depreciation exp = 16000 Marimum auto de pareciclean = loooo Deprecicdecin dockuckoon. Los y een = 10000 original basis of auto = 80000 MACRS depreciakica scite = 32). 2019 a 80000 X32 Fill MACRS depreciada exp = 25600 Merimuon auto depricakoi = 16000 Deparuialion deductaeini bos yeu - 16000

ear Convention Explanation. MACRs depreventon sale : 5 year prop . . l y eco at yean Convention Full HACRS deprecickós eup = Jx(2) Mexion um auto deprecalici - Lumery auto miks Depreciclean deduction 167 year = Lesson Calo (10) © the vehicle cost 500oo, use it sol. 2018 - Original basis of auto = 80000 MACKS depreciation Rate = 20% 80000 20 Full deprececelión expenses = 16000 Masimum auto eeprociclei =10000 Depreciation deduiclicin by yecor baved 100%. 2 [0000

Business use percentage = 80% Depreciction dedicataon las yeus -8000 2019 - original bary of auto - 80000 MACRS depreciale vile = 32). = 80000X32 Full macks depoacialon emp = 25600 Marimum aut depreciation - 16000 Depreciclaci deckecalici bor you breed 100%, 16000 Busines use Deprecickeins percentage. <80% deduceticis for your : 1 2800 Explanation & Macks depreciation Rate csy eco prop = lyeas 1 year Convention

Full MARCS deprecickós exp = (1)x(z) 5 Merinon auto depreciado chances auto leidy Depreciation deducation for yeco based 2007 - Lessos +(3)ar (W) Depsuciatusi deducickós for you: (946)