Alexandra purchased a $56,900 automobile during 2020 The business use was 60 percent What is the allowable depreciation for the current year (Ignore any possible bonus depreciation) (Use Exhibit 10-10)

 

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EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000** 10,000 3,160 3,160 16,000 16,000 5,100 5,100 9,600 9,600 3,050 3,050 5,760 5,760 1,875 1,875 *As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019. *$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k(2XF). EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000** 10,000 3,160 3,160 16,000 16,000 5,100 5,100 9,600 9,600 3,050 3,050 5,760 5,760 1,875 1,875 *As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019. *$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k(2XF).

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