Tammy acquired an automobile for ($20,000) on July 1, 2020. Her business use of the vehicle is
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Tammy acquired an automobile for \($20,000\) on July 1, 2020. Her business use of the vehicle is 70% in 2020, 70% in 2021, 40% in 2022, and 35% in 2023. The property’s MACRS recovery period is 5 years, and Tammy does not claim expensing or bonus depreciation for it. Assume the half-year convention applies.
a. Compute the MACRS depreciation deductions for each year.
b. What amount of previously claimed depreciation deductions must Tammy recapture in 2022?
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Related Book For
Pearsons Federal Taxation 2024 Individuals
ISBN: 9780138238100
37th Edition
Authors: Mitchell Franklin, Luke E. Richardson
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