Tammy acquired an automobile for $20,000 on July 1, 2019. Her business use of the vehicle is 70% in 2019, 70% in 2020, 40% in 2021, and 35% in 2022. The property’s MACRS recovery period is 5 years, and Tammy does not claim Sec. 179 expensing or bonus depreciation for it. Assume the half-year convention applies.
a. Compute the MACRS depreciation deductions for each year.
b. What amount of previously claimed depreciation deductions must Tammy recapture in 2021?