A business owner purchased a commercial building for $2,400,000. The land value of the purchase was estimated to be $350,000.The owner added a $300,000 sprinkler system and a $250,000 upgraded security system to the building before placing the asset in service on July 1, 2020. The owner utilizes cost segregation for qualified property.

What is the Modified Accelerated Cost Recovery System (MACRS) depreciation deduction for the building for the second year?

Answer rating: 100% (QA)

To calculate the MACRS depreciation deduction for the building for the second year we need to determ... View the full answer