In June 2022, a self-employed taxpayer purchased new equipment for $26,000 to be used in her business. Assuming she has net income from her business of $75,000 prior to the deduction, what is the maximum amount of cost recovery she can deduct rounded to the nearest dollar, assuming she does not elect §179 expense or bonus depreciation

Andre acquired a computer on March 3, 2019, for $2,800. He elects the straight-line method for cost recovery. Andre does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. Calculate Andre's cost recovery deduction for the computer for tax years 2019 and 2020. 2019: $ 2020: $

For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of $369,400. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area (not covered by insurance; before the 10%-of-AGI limitation but after the $100 floor) Home mortgage interest (loan qualifies as acquisition indebtedness) Credit card interest Property taxes on home Charitable contributions State income tax Tax return preparation fees $54,400 21,760 1,088 16,320 29,920 19,040 1,632 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.

On June 15, 2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable income from their business of $2.5 million before any cost recovery. Click here to access depreciation Table 8-2. (If required, round your answers to the nearest dollar.) a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery? $ 419,697 b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 × $ c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 ×

A taxpayer sold machinery for $24,000 on December 31, 2021. The machinery had been purchased on January 2, 2019 for $30,000, with 100% bonus depreciation being used. For 2021, the taxpayer should report O Ordinary income of $24,000 O $30,000 ordinary income O §1231 gain of $6,000 and ordinary income of $24,000 O §1231 gain of $24,000 and ordinary income of $6,000 O $1231 gain of $24,000 D

Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business: Fixed assets Goodwill Covenant not to compete Total $256,600 51,320 64,150 $372,070 a. How much of the $372,070 purchase price is for Section 197 intangible assets? b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations.

Sandra acquires a new machine (7-year property) for her business on March 10, 2020, at a cost of $430,000. Sandra makes the election to expense the maximum amount under §179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2020 assuming Sandra has taxable income of $500,000.

y applies to the questions displayed below. Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2. and Exhibit 10-10.) Problem 10-67 Part c (Algo) c. The vehicle cost $80,100, and she used it 80 percent for business. Year Depreciation deduction 2021 2022 Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want…

In 2021, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items: Loss from damage to rental property (S6,000) (5,00-) Investment-loss (painting theft) Personal casualty gain Personal casualty loss (after $100 floor) 4,000 (9,000) All casualties gains and losses occurred after 3-1-21. Determine the amount of Morley's itemized deduction from the losses. $5,120 $5,500 $3,000 $2,900 None of these

Rochelle is a limited partner in Megawatt Partnership. For 2021, her schedule K-1 from the partnership reported the following share of partnership items: Ordinary income Section 1231 loss Nondeductible expense Cash distribution Required: $ 25,000 (3,000) 1,000 5,000 a. Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. b. Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2021 after-tax cash flow as a result of her interest in Megawatt. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. Net impact on taxable income Required A Required B >