Question

Scott purchased 3 assets for his business in 2017. He purchased a new 3-year asset for $40,000 on January 21, 2017. He purchased a new 5-year asset for $800,000 on May 20, 2017, and he purchased a warehouse for $2,000,000 on November 20, 2017. Assuming his taxable income before Section 179 expense is $700,000, calculate Scott's total cost recovery deduction for 2017 Scott's total cost recovery deduction for 2017:

Answer 1

Answer The purchase Bassels for his Busing in 2017 Anew purchase 3 years assets for 40,000 Jan purchas 5 year assets for may 800,000 Anew A warehase = 2,000.000 Tanable intime Seckin 179 Expensu 700,000 > 3 year arret + 6 year Assels 5 10.000 + 800.000 Total = 810.000 Eligible investmed - 840,000 duduction under section 17.9 limited. upto 500.000 The Is

Scelt cam out of Invertiment dedo 500,000 840.000 from hi =700,000 limitation of section = 149 Maximun Investment is = 2000,000 Marimim deducloin . 500,000 Asset shoud be kept to minima - 50%