Answer |
Explanation : |
14. Note: The listed property does not pass the predominantly business usage test. |
We cannot take 179 expensing or additional first-year depreciation (if available). In addition, only straight-line cost recovery can be used. |
Maximum deduction = (50,000 * .0714 * 40%) |
= $1,428 |
Therefore, the maximum deduction is $1,428 |
Note:- As per guideline I have answered 1st part of the question. |
QUESTION 14 The only asset Bill purchased during 2020 was a new seven-year class asset. The...
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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)
d. The vehicle cost $80,000, and she used it 80 percent...
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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)
e. The vehicle cost $80,000, and she used it 20 percent...
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