Kris starts a new business in 2016. She purchases 7-year MACRS property costing $12,000. Her business income

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Kris starts a new business in 2016. She purchases 7-year MACRS property costing $12,000. Her business income before any cost-recovery deductions is $8,000.

a. What is the maximum cost-recovery deduction allowable for 2016?

b. How does your answer change if Kris informs you that she plans to make significant investments in personal property over the next 3 years?

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Concepts In Federal Taxation 2017

ISBN: 9781305965119

24th Edition

Authors: Kevin E. Murphy, Mark Higgins

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Question Posted: Feb 24, 2017 09:32 AM

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Kris starts a new business in 2016. She purchases 7-year MACRS property costing $12,000. Her business income

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a The maximum costrecovery deduction is obtained by electing to expense the maximum amount under Sec...View the full answer

Concepts In Federal Taxation 2017

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