A taxpayer acquires a $50,000 automobile and elects “bonus” depreciation for the year (2019). Assuming the...
A taxpayer acquires a $50,000 automobile and elects “bonus” depreciation for the year (2019). Assuming the automobile is added under the half-year convention, and used 75% for business, what is the depreciation deduction for the year?
Homework Answers
Maximum depreciation for 2019 including bonus depreciation for automobile is $18,100
It is further limited by business use.
Allowable depreciation deduction = 18,100 * 75% = 13,575
Thus, depreciation deduction is 13,575 for 2019
Add Answer to:
A taxpayer acquires a $50,000 automobile and elects “bonus”
depreciation for the year (2019). Assuming the...
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the...
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $1,000,000 b. $200,000 c. $1,050,000 d. $1,026,000 e. $210,000 An asset (not an automobile) put in service in June 2019 has a depreciable basis of $35,000 and a recovery period...
Mid-Quarter vs. Half-Year Convention. (Obj. 1) A calendar-year taxpayer acquired four new machines in 2019 on...
Mid-Quarter vs. Half-Year Convention. (Obj. 1) A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation. February 1 April 1 October 1 December 1 $50,000 70,000 60,000 80,000 a. Compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business,...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $51,000 before any cost recovery. What is the maximum amount that Travis may deduct under the election to expense? a. $0 b. $13,000 c. $25,000 d. $500,000 e. None of the above An asset (not an automobile) placed in service in June 2019 has a depreciable basis of $35,000...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 14.29 10.00 5.00 3.750 20.00 32.00 44.45 24.49 18.00 9.50 7.219 14.81 * 19.20 17.49 14.40 8.55 6.677 7.41 11.52 * 12.49 11.52 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285...
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...
A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179...
A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation. February 1 $50,000 April 1 70,000 October 1 60,000 December 1 80,000 a. compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the appropriate averaging convention. b. Same as...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life)...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life) for his business. In August of 2019, he purchased and placed in service $40,000 of trucks (5-year class life) for his business. In November of 2019, he purchased and placed in service $90,000 of furniture (7-year class life) for his business. These are the only assets placed in service during the year. His taxable income (before the 179 deduction) for 2019 is $50,000. Jack...
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...
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...
. EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019* 2018 2017 2016 Recovery Year...
.
EXHIBIT 10-10 Automobile Depreciation
Limits
Year Placed in
Service
2019*
2018
2017
2016
Recovery Year 1
10,000**
10,000*
3,160*
3,160*
Recovery Year 2
16,000
16,000
5,100
5,100
Recovery Year 3
9,600
9,600
3,050
3,050
Recovery Year 4 and after
5,760
5,760
1,875
1,875
TABLE 2a MACRS Mid-Quarter Convention: For
property placed in service during the first quarter
Depreciation Rate for
Recovery Period
5-Year
7-Year
Year 1
35.00%
25.00%
Year 2
26.00
21.43
Year 3
15.60
15.31
Year 4
11.01...
Mid-Quarter vs. Half-Year Convention. (Obj. 1) A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation. February 1 April 1 October 1 December 1 $50,000 70,000 60,000 80,000 a. Compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 14.29 10.00 5.00 3.750 20.00 32.00 44.45 24.49 18.00 9.50 7.219 14.81 * 19.20 17.49 14.40 8.55 6.677 7.41 11.52 * 12.49 11.52 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285...
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...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life) for his business. In August of 2019, he purchased and placed in service $40,000 of trucks (5-year class life) for his business. In November of 2019, he purchased and placed in service $90,000 of furniture (7-year class life) for his business. These are the only assets placed in service during the year. His taxable income (before the 179 deduction) for 2019 is $50,000. Jack...
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...
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...
.
EXHIBIT 10-10 Automobile Depreciation
Limits
Year Placed in
Service
2019*
2018
2017
2016
Recovery Year 1
10,000**
10,000*
3,160*
3,160*
Recovery Year 2
16,000
16,000
5,100
5,100
Recovery Year 3
9,600
9,600
3,050
3,050
Recovery Year 4 and after
5,760
5,760
1,875
1,875
TABLE 2a MACRS Mid-Quarter Convention: For
property placed in service during the first quarter
Depreciation Rate for
Recovery Period
5-Year
7-Year
Year 1
35.00%
25.00%
Year 2
26.00
21.43
Year 3
15.60
15.31
Year 4
11.01...
Most questions answered within 3 hours.
-
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 31 minutes ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 21 minutes ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 27 minutes ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 1 hour ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 1 hour ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 1 hour ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 1 hour ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 1 hour ago -
Why are polymers not typically casted into products?
asked 2 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 2 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 2 hours ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 2 hours ago