Carl purchases a Jaguar automobile for $60,000. Carl plans to use the automobile exclusively in his business

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Carl purchases a Jaguar automobile for $60,000. Carl plans to use the automobile exclusively in his business and boasts that he intends to recover his cost through MACRS depreciation deductions over five years. What restrictions have been imposed to reduce the tax benefits of purchasing a luxury automobile for business use? Explain how the restrictions work. Will he be able to circumvent these restrictions by leasing the vehicle?
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Taxation For Decision Makers 2014

ISBN: 9781118654545

6th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

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