John Snow purchased a used vehicle for $10,000 on July 1, 2018. On January 2, 2019, he

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John Snow purchased a used vehicle for $10,000 on July 1, 2018. On January 2, 2019, he converted the automobile to business use. At the time of the conversion the automobile had a fair market value of $9,000 and a salvage value if 1,900. What is John's maximum recovery deduction for 2019? Answer.

Mary Joe purchased land and a building for $70,000, of which $15,000 is applicable to the land. The building qualifies as 39 year recovery property and has a $15,000 salvage value. What would be the amount upon which a MACRS deduction would be computed?

On September 14, 2019, Sam purchased used 5-year recovery property for $120,000 to use in his sole proprietorship. What is the maximum deduction that can be claimed for 2019 if no amount is expensed under Sec. 179 and no bonus depreciation is deducted?

A calendar year taxpayer purchased a new factory building for $300,000 on July 1, 2019. The land was valued at $60,000. The building qualifies as a 39-year recovery property. Compute the maximum allowable MACRS deduction for 2019.