Carlos purchased a new business asset (five-year property) on February 10, 2023, at a cost of...

 

 

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Carlos purchased a new business asset (five-year property) on February 10, 2023, at a cost of $100,000. Carlos elected to expense $10,000 of the cost immediately under 179 and the remainder using MACRS. Determine the total cost recovery deduction for 2023 for this asset. (Assume the half-year convention). On June 1, 2022, Teresa places in service a new automobile (5-year property) that cost $30,000. It was the only asset placed in service that year. The car is used 80% for business and 20% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction on the car for the second year (2023). Carlos purchased a new business asset (five-year property) on February 10, 2023, at a cost of $100,000. Carlos elected to expense $10,000 of the cost immediately under 179 and the remainder using MACRS. Determine the total cost recovery deduction for 2023 for this asset. (Assume the half-year convention). On June 1, 2022, Teresa places in service a new automobile (5-year property) that cost $30,000. It was the only asset placed in service that year. The car is used 80% for business and 20% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction on the car for the second year (2023).

Answer rating: 100% (QA)

To determine the total cost recovery deduction for 2023 for Carloss business asset we need to calculate the deductions allowed under both Section 179 and MACRS Section 179 Expense Carlos elected to ex... View the full answer