MNO is a calendar year taxpayer. On March 1, MNO signed a 36-month lease on 2,100 square

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MNO is a calendar year taxpayer. On March 1, MNO signed a 36-month lease on 2,100 square feet of commercial office space. It paid a $3,240 fee to the real estate agent who located the space and negotiated the lease and $8,800 to install new overhead lighting in the office space. Lighting equipment is seven-year recovery property. Compute MNO’s first-year cost recovery deduction with respect to the $12,040 cost relating to the lease space, assuming no Section 179 deduction or bonus depreciation.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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