Estelle owns The Estelle Talent Agency in New York. On November 10, 2020, she purchased office furniture (7-year property) for $500,000. In addition, she purchased a printing machine (7-year property) on February 22, 2020 for $200,000. The office furniture and printing machine were the only two assets Estelle purchased in 2020, and she placed them into business use on the respective date of the purchase. Estelle has chosen not to elect bonus depreciation or Section 179 expensing for either asset. Answer the following two questions. For credit, you must round your answer to the NEAREST DOLLAR. Do NOT enter the dollar sign in your answer - only enter the numbers (e.g., X,XXX). For example, one thousand dollars should be entered as 1,000. Enter zero (i.e., “0”) where necessary.   (a) How much is Estelle’s cost recovery deduction in 2020 related to these two assets? $

Olga is the proprietor of a small business. In 2019, the business’s income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduc-tion on them. She does not claim any available additional first-year depreciation. Olga’s cost recovery deduction for 2019, except for the cost recovery with respect to the new 7-year assets, is $95,000. Determine Olga’s total cost recovery for 2019 with respect to the 7-year class assets and the amount of any § 179 carryforward.

Sherry Lockey, who is single, has a new limited partnership investment in a commercial rental project in which she has no personal involvement. During 2021, her share of the partnership loss equals $15,000. Sherry also has a new rental house that she actively manages, and this activity generated a $9,000 loss for 2021. Sherry had no passive loss carryover from prior years. If Sherry's modified adjusted gross income before passive losses is $138,000, calculate the deduction amounts for Sherry's 2021 tax return using Form 8582 (page 1). If an amount box does not require an entry or the answer is zero, enter "0". Note: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 3d, 4, and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. Form 8582 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Sherry Lockey Part I 2021 Passive Activity Loss Caution: Complete Parts IV and V…

Joyce is a widowed taxpayer whose husband Willard passed away on March 31, 2020. Joyce and Willard had purchased a home for $215,000 on September 12, 2004, lived in the home as their main home until Willard's death. Joyce moved in with her daughter after Willard's death, and sold the home on November 30, 2020 , for $595,000. How much of the gain on the sale can Joyce exclude from taxable income? Select one: O a. $500,000, the maximum exclusion for an unmarried surviving spouse O b. $380,000, the amount of gain on the sale of the home O C. $250,000, the maximum exclusion amount for a single taxpayer O d. $0, because she moved out before she sold the home