Dengar Lars acquired a new network system on June 5, 2023 (five-year class property), for $75,000. She expects taxable income from thebusiness will always be about $175,000 without regard to the $179 election. Lars will elect $179 expensing. She also acquired seven-year property in July 2023 for $350,000. (Use Table 6A-1)Required:Determine Lars's maximum cost recovery deduction with respect to her purchases in 2023.Answer is complete but not entirely correct.Lars's maximum cost recovery deduction$125,015 X

To calculate Lars's maximum cost recovery deduction for her 2023 acquisitions, we need to analyze…

Answered: Lars acquired a new network system on…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 70P

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Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009
In March 2019, Helen Carlon acquired used equipment for her business at a cost of 300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2019 for regular income tax purposes, what is the amount of the AMT adjustment? b. Draft a letter to Helen regarding the choice of depreciation methods. Helens address is 500 Monticello Avenue, Glendale, AZ 85306.
Lars acquired a new network system on June 5, 2023 (five-year class property), for $69,000. She expects taxable income from the business will always be about $215,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2023 for $430,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2023.
Lars acquired a new network system on June 5, 2023 (five-year class property), for $69,000. She expects taxable income from the business will always be about $215,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2023 for $430,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2023. TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13…
Lars acquired a new network system on June 5, 2021 (five-year class property), for $62,000. She expects taxable income from the business will always be about $180,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2021 for $360,000. Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2021.
During 2020, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $62,200 Baking equipment (June 30) 18,660 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2020, assuming he uses the automobile 100 percent in his business.$
Please help me with the following question. During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $51,500 Baking equipment (June 30) 6,500 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2018, assuming he uses the automobile 100 percent in his business.
During 2020,William purchases the following capital assets for use in his catering business:New passenger automobile (September 30) $59,800 Baking equipment (June 30) 17,940 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income. Required:Calculate William's maximum depreciation deduction for 2020, assuming he uses the automobile 100 percent in his business.
Andre acquired a computer on March 3, 2022, for $25,400. 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 2022 and 2023. 2022: $ 2023: Diana acquires, for $159,200, and places in service a 5-year class asset on December 19, 2022. It is the only asset that Diana acquires during 2022. Diana does not elect immediate expensing under § 179. She elects additional first-year deprecation. Click here to access the depreciation table to use for this problem. Calculate Diana's total cost recovery deduction for 2022.
During 2020, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $53,400 Baking equipment (June 30) 16,020 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2020, assuming he uses the automobile 100 percent in his business. X
In 2020, Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12.000 in 2020, 14,500 in 2021, and 13,000 in 2022. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2022 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2022 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume $179 was not elected in the year of purchase. a b. Deduction
Mr. Chan decided to rent out one of his properties, and spent $200,000 to renovate the property in order to maximize the rental income. He finally rented the property for $50,000 per month for a three year term starting from 1 January 2019. How much can he claim for statutory deduction under property tax for the year of assessment 2020/21? Select one: a. $30,000 b. $120,000 c. None of above d. $200,000

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