1. How do I determine Line 14 Special Depreciation?
2. How do I determine Line 17 MACRS Deduction for Assets?
I was not sure if I was too use all assets in 2019 or certain ones to input.
Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sq.ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home $2,800 Utilities Cleaning 900 Insurance 1,100 2.000 Property taxes Required: Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar. Schedule of Fixed Asset Rolforward Trish's bookkeeper has provided the following book-basis fixed asset roliforward: Himple Retail Fixed Asset Rollforward 12/31/2019 (book basis) COST 2017 BASIS DEPR 9,900.00 1,815.00 9,900.00 1,815.00 ASSET CASH REGISTER 2017 TOTAL ADDITIONS DEPR IN SERVICE METHOD LIFE 2/15/2017 SL 5 2018 DEPR 1,980.00 1,980.00 2019 DEPR 1,980.00 1,980.00 ACCUM DEPR 5,775.00 5,775.00 NET BOOK VALUE 4,125.00 4,125.00 7 848.21 RETAIL FIXTURES FURNITURE 10/12/2018 10/12/2018 SL SL 7 696.43 4,750.00 3,900.00 8,650.00 18,550.00 169.64 678.57 139.29557.14 308.93 1,235.71 2,288.93 3,215.71 3,901.79 3,203.57 7,105.36 11,230.36 2018 TOTAL ADDITIONS 1,544.64 TOTAL 1,815.00 7,319.64 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2019 TOTAL ADDITIONS TOTAL 6/1/2019 6/1/2019 6/1/2019 SL SL SL 5 7 37,500.00 1,900.00 2 ,800.00 52,200.00 4,375.00 991.67 326.67 5,693.34 8,909.05 4,375.00 991.67 326.67 5 33,125.00 10,908.33 2,473.33 46,506.66 57,737.02 5,693.34 70.750.00 1,815.00 2,288.93 13.012.98 OMB No. 1545-0172 Form 4562 Depreciation and Amortization 2019 Department of the Treasury Internal Revenue Service (99) Attachment (Including Information on Listed Property) Attach to your tax return. Go to www.irs.gov/ Form4562 for instructions and the latest information. Business or activity to which this form relates Himple Retail Sequence No. 179 Name(s) shown on return Trish Himple Identifying number 123-45-6789 Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (see instructions)..................... 3 Threshold cost of section 179 property before reduction in limitation (see instructions) ............ 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -- ........... 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions (a) Description of property (b) Cost (business use only) (c) Elected cost 7 Listed property. Enter the amount from line 29....... 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7..... 9 Tentative deduction. Enter the smaller of line 5 or line 8... 10 Carryover of disallowed deduction from line 13 of your 2018 Form 4562........... 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 13 Carryover of disallowed deduction to 2020. Add lines 9 and 10, less line 12 Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 10,889 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions ................... 15 Property subject to section 168(1)(1) election.................................. 16 Other depreciation (including ACRS) .............................. .. Part IIT MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2019.......... 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here
