Question

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Chaz Corporation has taxable income in 2020 of $376,000 for purposes of computing the §179 expense and acquired the following assets during the year:

	Placed in
Asset	Service		Basis
Office furniture	September 12	$	671,000
Computer equipment	February 10		938,000
Delivery truck	August 21		69,000
Qualified improvement property	September 30		1,539,000
Total		$	3,217,000

1. What is the maximum total depreciation deduction that Chaz may deduct in 2020? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Answer 1

Property, Awo) Half a year Convention Will be used ! LS.N Particulars Amount Explanation 4) Property placed in Service $3,217,000 Total $179 Qualified in 2020 (2) Threshold for section 179 2,590,000 (2020 section 179 linit) Phase-out 2020 (3) Phase-out of maximum $627,000 Subtract (1) – (2) Section 17gl Expense (4) Maximum 179 Section $1,040,000 [2020 Section 179 Expense before phase – masimum Expense deduction out from (3) (5) phase-out of Marimum $627,000 &179 Expense 162 Manimum Section 179 $413,000 Expense After Phase – Subtract (4) - (5) but not below o. out

Quarter Balance lite Rate Depreciatio y 14.29 $ Assets Amounts 119 Ded. Balance Bonus Depreciation $674000! $671,000 $671,000 furniture 3rd office o 7 . 5 20% & Ist compute 938,000 Equipment 938,000/ 938,000 0 69,000 69,000 5 20% $ 3rd Delivery 69,000 Truck 3rd Improv 1,539,000$413,000 1,126,000 0 $1,126.000 39 0.749 $84.33.74 ay ΟΥ ement $8.434 Property (Roundetoft Bonus $_1,678,000 $1678,000 [671,000'+ 938,000 + 69,000 1 179 Deduction 413,000 Depreciation Maximum Total Deduction Expense $ 2099,434 ktorking Notes: & Maximum Total Deduction Expense = ($8,434+ $1,678,000+ $413.000 Aus Home, Manimum Total Deduction Expense $2,099,434

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