Dr. Cliff Payne purchased and placed in service $612,085 of new fixed assets in his dental...

Transcribed Image Text:

Dr. Cliff Payne purchased and placed in service $612,085 of new fixed assets in his dental practice during the current year. Office furniture and fixtures $ 70,000 Computers and peripheral equipment 67,085 Dental equipment 475,000 Using his financial reporting system, he concludes that the depreciation expense on Schedule C of Form 1040 is $91,298. Office furniture and fixtures ($70,000 x 14.29%) $10,003 Computers and peripheral equipment ($67,085 x 20%) 13,417 Dental equipment ($475,000 x 14.29%) 67,878 $91,298 In addition, this year Dr. Payne purchased another personal residence for $480,000 and converted his original residence to a rental property. Has Dr. Payne correctly calculated the depreciation expense for his dental practice? Will he be able to deduct any depreciation expense for his rental properties? Dr. Cliff Payne purchased and placed in service $612,085 of new fixed assets in his dental practice during the current year. Office furniture and fixtures $ 70,000 Computers and peripheral equipment 67,085 Dental equipment 475,000 Using his financial reporting system, he concludes that the depreciation expense on Schedule C of Form 1040 is $91,298. Office furniture and fixtures ($70,000 x 14.29%) $10,003 Computers and peripheral equipment ($67,085 x 20%) 13,417 Dental equipment ($475,000 x 14.29%) 67,878 $91,298 In addition, this year Dr. Payne purchased another personal residence for $480,000 and converted his original residence to a rental property. Has Dr. Payne correctly calculated the depreciation expense for his dental practice? Will he be able to deduct any depreciation expense for his rental properties?

Answer rating: 100% (QA)

Yes the amount is calculated correctly As office furniture and fixtures compute... View the full answer