Sid purchased an automobile for personal use on January 18, 2013 for $10,000. On January 1, 2017,
Question:
Sid purchased an automobile for personal use on January 18, 2013 for $10,000. On January 1, 2017, Sid starts a small business and begins to use the automobile exclusively in the business. The automobile’s FMV on this date is $6,000. MACRS depreciation deductions are based on a 5-year recovery period.
a. What is the automobile’s basis for depreciation when converted to business use in 2017?
b. Assuming Sid does not elect Sec. 179 expensing and elects out of bonus depreciation, what is Sid’s depreciation deduction in 2017?
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a The automobiles basis for depreciation is 6000Wh...View the full answer
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Related Book For 
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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