Casper used the following assets in his Schedule C trade or business in the tax year 2017:

Question:

Casper used the following assets in his Schedule C trade or business in the tax year 2017:


Asset

Date Purchased

Date

Sold

Business

Use Percentage 

Cost

Computer 1

03/12/14


100%

$3,000

Computer 2

05/05/14

05/15/17

100%

$2,500

Printer

08/25/17


100%

$2,200


Computer 3


05/25/17



100%


$2,800

Equipment

03/20/15


100%

$2,700

Auto

05/01/17


 90%

$20,000

Furniture 1

02/12/15

08/25/17

100%

$22,000

Furniture 2

08/15/15


100%

$3,600

Office bldg.

04/01/17


100%

$330,000


Casper is a new client and unfortunately does not have a copy of his prior year tax return. He recalls that all of the assets purchased in prior years used MACRS depreciation (no §179 expensewas taken). Casper does not wish to take a §179. Calculate the current year depreciation allowance for Casper’s business. Correctly report the amounts on Form 4562.

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Related Book For  book-img-for-question

Fundamentals Of Taxation 2018

ISBN: 9781259713736

11th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

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