Kris starts a new business in 2020. She purchases 7-year MACRS property costing $12,000. Her business income
Question:
Kris starts a new business in 2020. She purchases 7-year MACRS property costing $12,000. Her business income before any cost-recovery deductions is $8,000. Kris does not want to claim bonus depreciation.
a. What is the maximum cost-recovery deduction allowable for 2020?
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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a The maximum costrecovery deduction is obtained by electing to expense the maximum amount under Section 179 and using the regular MACRS method to com...View the full answer
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Related Book For 
Concepts In Federal Taxation 2021
ISBN: 9780357141212
28th Edition
Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg
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