Columbia LLC only purchased one asset this year. Columbia LLC was placed in service on July 9, 2021, with machinery (seven-year property) with a purchase cost of $2,650,000 and an installation cost of $100,000. Columbia has a taxable income of $1,000,000. Calculate the maximum depreciation deduction, including §179 expensing (but ignoring bonus depreciation) for the year. (Round final answer to the nearest whole number.)

18. Is the §179 expense depreciation limited by the amount of TPP placed in service? NO
19. If so, what is the available §179 expense depreciation after any phase-out? ______________
20. The cost basis of the machinery is ____________2,750,000_________.
21. The adjusted basis of the machinery is ______________ = (24) _____2750000 minus any

(23) §179 expense depreciation ______________.

26. Is the machinery subject to the mid quarter convention? ____________
27. The regular depreciation calculation is (a)_____________ equal to the adjusted basis

(25)____________ x (b)_______% using Depreciation Table # (c)____.

28. Is there a §179 expense depreciation carryforward? ________
29. (a)______________ taxable income minus (27a)_______________ regular depreciation = _______________ the max §179 expense that can be used this year without creating a net operating loss (NOL).
30. The amount of any §179 expense depreciation carryforward _________________=

(23)____________ minus (29)____________

31. If there is a §179 expense depreciation carryforward, how long can it be carried forward?_________

Answer rating: 100% (QA)

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