Question

Janet purchased her personal residence in 2009 for $324,000. In January 2019, she converted it to rental property. The fair m
Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Month in the First Recovery Year the Property Is Placed in Service 1 2 3 4 5 6
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

a. The depreciable basis is the lower of the FMV or basis at the date of conversion. Therefore, the depreciable basis is $270,000 depreciated on a 27½ year mid-month method.

$270,000 x .03485 = $9,409.50

b. $324,000 x .03485 = $11,291.40

Add a comment
Know the answer?
Add Answer to:
Janet purchased her personal residence in 2009 for $324,000. In January 2019, she converted it to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question: Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, ......

    Question: Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, ... Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2018, Holly purchased a residential apartment building. The cost basis assigned to the building is $195,400. Holly also owns another residential apartment building that she purchased on December 15, 2018, with a cost basis of $790,000. Click here to access the depreciation tables. If required, round intermediate calculations and final...

  • TABLE 7.3 MACRS for Residential Real Property (27.5-year property) Year 1 2 3 4 Month Placed...

    TABLE 7.3 MACRS for Residential Real Property (27.5-year property) Year 1 2 3 4 Month Placed in Service 5 6 7 Depreciation Rate 8 9 10 11 12 1 2-27 28 29 3.485% 3.636 1.970 0.000 3.182% 3.636 2.273 0.000 2.879% 3.636 2.576 0.000 2.576% 3.636 2.879 0.000 2.273% 3.636 3.182 0.000 1.970% 3.636 3.458 0.000 1.667% 3.636 3.636 0.152 1.364% 3.636 3.636 0.455 1.061% 3.636 3.636 0.758 0.758% 3.636 3.636 1.061 0.455% 3.636 .636 1.364 0.152% 3.636 3.636 1.667...

  • Alex and Betty have agreed to form a cash-basis general partnership As of January 1, 20X4,...

    Alex and Betty have agreed to form a cash-basis general partnership As of January 1, 20X4, Alex contributed $175,000 cash and an apartment complex valued at $2,578,000. Alex purchased the complex on April 12, 20X1 for $1,850,000 and has been operating the property as a sole proprietorship. The property is subject to a recourse debt of $775,000 that is assumed by the partnership. Betty contributed $1,080,000 cash and an apartment complex valued at $2,600,000 and investment land valued at $425,000....

  • Janet purchased her personal residence in 2008 for $250,000. In January 2018, she converted it to...

    Janet purchased her personal residence in 2008 for $250,000. In January 2018, she converted it to rental property. The fair market value at the time of conversion was $210,000. (Use Table 6A-6) Determine the amount of cost recovery that can be taken in 2018: Determine the amount of cost recovery that could be taken in 2018 if the fair market value of the property were $350,000:

  • Lopez acquired a building on June 1, 2015, for $8,284,900. Compute the depreciation deduction assuming the...

    Lopez acquired a building on June 1, 2015, for $8,284,900. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate. $ b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as...

  • Required information [The following information applies to the questions displayed below.) AMP Corporation (calendar-year-end) has 2019...

    Required information [The following information applies to the questions displayed below.) AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2019, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Machinery Computer equipment Office building Total Placed in Service September 12 February 10 April 2 Basis $1,420,000 430,000 545,000 $2,395,000 a. What is the maximum amount of $179 expense AMP may deduct...

  • Chaz Corporation has taxable income in 2019 of $406,000 for purposes of computing the 5179 expense...

    Chaz Corporation has taxable income in 2019 of $406,000 for purposes of computing the 5179 expense and acquired the following assets during the year, Asset Office furniture Computer equipment Delivery truck Qualified improvement property Total Placed in Service September 12 5 February 10 August 21 September 301 Basis 781,600 916,000 58,000 ,517,000 $ 3,272,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1 Table 2. Table 3. Table 4 and Table 5.)...

  • Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship)...

    Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions ($179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round...

  • Required information The following information applies to the questions displayed below] Assume that Timberline Corporation has...

    Required information The following information applies to the questions displayed below] Assume that Timberline Corporation has 2019 taxable income of $256,000 for purposes of computing the S179 expense. It acquired the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Purchase Asset Date Basis Furniture (7-year) Computer equipment (5- year) Copier (5-year) Machinery (7-year) December 1 $ 466,eee February 28 106, еее July 15 May 22 46,eee 496,eee $1,114,eee Total Required: a-1....

  • Required information [The following information applies to the questions displayed below.) Assume that TDW Corporation (calendar-year-end)...

    Required information [The following information applies to the questions displayed below.) Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 for purposes of computing the $179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,270,000 263,000 880,000 $ 3,413,000 b. What is the maximum total depreciation, including...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT