On July 17, 2020, Hernan places in service a used automobile that cost $25,000. The car is used 80% for business and 20% for personal use. In 2021, he used the automobile 40% for business and 60% for personal use. Hernan chooses not to take § 179 or additional first-year depreciation. Determine the cost recovery recapture for 2021.

Answer rating: 100% (QA)

SOLUTION To determine the cost recovery recapture for 2021 we first need to calculate the adjusted basis of the automobile at the beginning of the yea... View the full answer