Question

A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?

	a.	$1,000,000
	b.	$200,000
	c.	$1,050,000
	d.	$1,026,000
	e.	$210,000

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

	a.	$17,500
	b.	$35,000
	c.	$24,400
	d.	$7,000
	e.	$21,000

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $2,065,000, a recovery period of 5 years, and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost that can be deducted in 2019?

	a.	$411,000
	b.	$1,411,000
	c.	$1,427,000
	d.	$2,065,000
	e.	None of the above

A taxpayer places a $50,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, no special elections (for example, election to expense), what is the amount of total cost recovery deduction?

	a.	$0
	b.	$5,000
	c.	$25,000
	d.	$30,000
	e.	$50,000

Answer 1

Hi

Let me know in case you face any issue:

All are individual question, although all have been answered: Answers are highlighted in yellow: Solution: Answer: $1,026,000 1) Amount 1050000 Total $179qualified property 2550000 (2019 179 limit) Explanation: Particulars Property placed in service in 2019 Threshold for $179 phase-out-2019 Phase-out of maximum $179 expense (1-2) Maximum 179 expense before phase-out Phase-out of maximum $179 expense Maximum Section 179 deduction for 2019 is Balance depreciable value (1050000-1020000) Add: MACRS Depreciation_Half year conv_5years (30000*20%) Total cost recovery deduction 1020000 (2019 179 limit) o from above 1020000 30000 6000 1026000 2) $35,000 Because, under bonus election 100% of deduction is allowed. 3) $2,065,000 Because, under bonus election 100% of deduction is allowed. $50,000 Because, under bonus election 100% of deduction is allowed.