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 | 03/12/15 | 100% | $3,000 | |
Computer 2 | 05/05/15 | 05/15/18 | 100% | $2,500 |
Printer | 08/25/18 | 100% | $2,200 | |
Computer 3 | 05/25/18 | 100% | $2,800 | |
Equipment | 03/20/16 | 100% | $2,700 | |
Auto | 05/01/18 | 90% | $20,000 | |
Furniture 1 | 02/12/16 | 08/25/18 | 100% | $22,000 |
Furniture 2 | 08/15/16 | 100% | $3,600 | |
Office bldg. | 04/01/18 | 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 expense was 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.
Step by Step Answer:
Fundamentals Of Taxation 2019
ISBN: 9781260158670
12th Edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone