Tracy acquires an automobile (MACRS 5-year recovery) on March 1, 2015. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile cost $36,000, and no amount is expensed under Sec. 179.
a. What is depreciation for 2015–2020 and any subsequent years?
b. How would your answer to Part a change if the vehicle were a SUV with a gross vehicle weight rated (GVWR) of over 6,000 pounds and Tracy elected to expense the SUV under Sec. 179?