Question

QUESTION 14 The only asset Bill purchased during 2020 was a new seven-year class asset. The asset, which was listed property,
0 0
Add a comment Improve this question Transcribed image text
Answer #1
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.
Add a comment
Know the answer?
Add Answer to:
QUESTION 14 The only asset Bill purchased during 2020 was a new seven-year class asset. The...
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 15 On May 2, 2020, Karen placed in service a new sports utility vehicle that...

    QUESTION 15 On May 2, 2020, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 60% for business and 40% for personal use. Determine Karen's total cost recovery for 2020. Karen wants to use both $179 and additional first-year depreciation. O a. $7,200 O b. $25,000 O $27,200 d. $36,000 Oe. None of the above

  • May 2, 2018, Karen placed in service a new sports utility vehicle that cost $60,000 and...

    May 2, 2018, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 pounds. the vehicle is used 60% for business and 40% for personal use. Determine Karen's total cost recovery for 2018. Karen wants to use both IRC Sec. 179 and additional first-year bonus depreciation. Group of answer choices None of these answers 27,200 25,000 7,200 36,000

  • Mary purchased a new five-year class asset on March 7, of the current year. The asset...

    Mary purchased a new five-year class asset on March 7, of the current year. The asset was listed property (not an automobile). It was used 70% for business and the rest of the time for personal use. The asset cost $20,000. Mary made the § 179 election. The income from the business before the § 179 deduction was $200,000. Determine the total deductions with respect to the asset for 2019. $6,000 $10,000 $14,000 $20,000

  • Lina purchased a new car for use in her business during 2019. The auto was the...

    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.) a. The...

  • Lina purchased a new car for use in her business during 2019. The auto was the...

    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...

  • QUESTIONS Hans purchased a new passenger automobile on August 17, 2020, for $30,000. During the year...

    QUESTIONS Hans purchased a new passenger automobile on August 17, 2020, for $30,000. During the year the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the car for 2020. O a. $500 ob. $1,000 c. $1,200 O d. $1,333 O e. None of the above

  • 69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A...

    69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A В с Total January 10 July 5 November 15 $ 106,000 70,000 1,950,000 $ 2.126.000 Audra elects Code Section 179 treatment for Asset C. Her taxable income from her business would not create a limitation for purposes of the Code Section 179 deduction. Audra does not claim any available additional first-year depreciation deduction. Determine her total cost recovery deduction (including the Code Section 179...

  • Lina purchased a new car for use in her business during 2019. The auto was the...

    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...

  • 1. On June 1 of the current tax year, Tab converted a machine from personal use...

    1. On June 1 of the current tax year, Tab converted a machine from personal use to use as rental property. At the time of the conversion, the machine was worth $70,000. Five years ago Tab purchased the machine for $120,000. The machine is subject to a $100,000 mortgage. What is the basis of the machine for depreciation purposes? a. $70,000 b. $90,000 c. $100,000 d. $120,000 e. $150,000 2. Hazel, a calendar-year taxpayer, purchased a new business asset (five-year...

  • Hamlet acquires a 7-year class asset on November 23, 2019, for $264,600 (the only asset acquired during the year). Hamle...

    Hamlet acquires a 7-year class asset on November 23, 2019, for $264,600 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first year depreciation. This is Hamlet's only tangible personal property acquisition for the year. Use the Depreciation Table for this Problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2019 and 2020. 2019: $ 2020: $

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