A)
Determine his cost recovery for 2019
$ 2.5 mil – 325,000 = 2,175,000 * .00455 = 9,896.25
B)
Determine his cost recovery for 2026
$ 2,175,000 * .3636 = 79,083
C)
Determine his adjusted basis for the building as of the date of sale.
= $ 2,175,000 – 9,896.25 – 79,083 –[(2,175,000 *.3636) *6] = 1,611,522.75
D)
If Juan sold the building for $2.7 million, how much was his gain :
42,700,000 – 1,611,522.75 = 1,088,477.251
* Andrew can take with respect to the cost for 2019 = $52,000 * 85% = 44,200
* The cost recovery for kendra brown :
a. The cost recovery for 2019
= $74,000 * .20 = 14,800
b. The cost recovery for 2020
= $74,000 * .50 = 37,000 * .32 = 11,840
On July 21, 2019, Andrew purchased and placed in service a new car. The purchase price...
Tax Problem On February 2, 2018, Katie purchased and placed in service a new $18,500 car. The car was used 65% for business, 5% for production of income, and 30% for personal use in 2018. In 2019, the usage changed to 40% for business, 15% for production of income, and 45% for personal use. Katie did not elect immediate expensing under § 179. She elects not to take additional first-year depreciation. If required, round your answers to the nearest dollar....
6). Nora purchased a new automobile on July 20, 2019, for $29,000. The car was used 60% for business and 40% for personal use. In 2020, the car was used 30% for business and 70% for personal use. Nora elects not to take additional first-year depreciation. Determine the cost recovery recapture and the cost recovery deduction for 2020.
1. MC.08.056 Barry purchased a used business asset (seven-year property) on September 30, 2019, at a cost of $200,000. This is the only asset he purchased during the year. Barry did not elect to expense any of the asset under $ 179, did not claim additional first-year depreciation, and did not elect straight-line cost recovery. Barry sold the asset on July 17, 2020. Determine the cost recovery deduction for 2020. a. $19,133 b. $55,100 OC. $34,438 Od. $24,490 2. MC.08.062...
At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year: Date Cost Asset Acquired Basis Computers 1/30 $ 35,500 Office desks 2/15 $ 39,500 Machinery 7/25 $ 82,500 Office building 8/13 $ 410,000 Assuming Anna does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: What is Anna’s year 1 cost recovery for each asset? b. What is Anna’s year 2 cost recovery...
Exercise 8-27 (Algorithmic) (LO.4) On April 5, 2019, Kinsey places in service a new automobile that cost $45,500. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 80% for business and 209 chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1:...
At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year: Date Cost Asset Acquired Basis Computers 1/30 $ 40,000 Office desks 2/15 $ 44,000 Machinery 7/25 $ 87,000 Office building 8/13 $ 416,000 Assuming Anna does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) a. What is Anna's year...
IDUAL TAXATION FINAL EXAM 16. James purchased a new business asset (three-year personalty) on July 23, 2018, at a cost of $40,000. James takes additional first-year (Bonus) depreciation but does not elect Section 179 expense on the asset. Determine the cost recovery deduction for 2018. a. $8,333 b. $26,666 c. $33,333 d. $40,000 e. None of the above 17. Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of $30,000. She also purchased a...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $65,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 60% for business and 40% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $68,750. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 95% for business and 5% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost 576,250. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 90% for business and 10% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this...