Hurwitz Realty purchased a residential property for $1,200,000 and allocated the purchase price to land and building in the amounts of $300,000 and $900,000, respectively. Hurwitz Realty obtain the certificate of occupancy and placed the property in Service during on September 1st. What is the amount of depreciation expense Hurwitz Realty will deduct in year one (rounded)?
A. $16,300.
B. $9,500.
C. $7,600.
D. $6,700.
E. $2,800.
B $ 9500
As per MACRS 27.5-Year Residential Real Estate Table, the percentage applicable iin Year 1 f placed in service is 1.061%.
The depreciable amount = 900,000 since land will not be depreciated.
Hence depreciation in year 1 = 1.061%*900000 = 9549
rounded off to $9500
Hurwitz Realty purchased a residential property for $1,200,000 and allocated the purchase price to land and...
On July 21, 2019, Andrew purchased and placed in service a new car. The purchase price was $52,000. This was the only business-use asset Andrew acquired in 2019. He used the car 85% of the time for business and 15% for personal use and maintains proper documentation of use. Andrew would like to deduct the maximum amount possible. Calculate the total deduction Andrew can take with respect to the car for 2019. Kendra Brown, a sole proprietor, acquires a new...