1:10-35 1:10-36 applies for each year. What amount of gain or loss does Bobby recoga Tupreciation deduction for each asset in 2019? Mixed Personal/Business Use. Trish is a or loss does Bobby recognize on the properties sold in 2019? Tor /2,000 and places it into service in 2019. Calculate Trish's current year depreciation deduction, assuming she on deduction, assuming she does not clect Sec. 179 expensing, she elects out of bonus depreciation, and the half-year convention applies. a. Irish uses the vehicle 60% for her business and 40% for personal purposes. D. Trish uses the vehicle 40% for her business and 60% for personal purposes. cmployee Listed Property. Assume the same facts as in Problem I:10-35, except Trish 1 an employee who uses the automobile for her employment-related activities. While such use is helpful for her employer, it does not require Trish to use her own vehicle as a condi- tion of employment. What is her depreciation deduction for the automobile? Recapture of Depreciation Deductions Due to Personal use. Tammy acquired an automo- bile for $20,000 on July 1, 2016. Her business use of the vehicle is 70% in 2016, 70% in 2017, 40% in 2018, and 35% in 2019. The property's MACRS recovery period is 5 years and Tammy does not claim Sec. 179 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 1:10-37 1:10-38 1:10-39 in 2018? Luxury Auto Limitations. Lutz Corporation acquired a 100% business-use automobile (MACRS 5-year recovery) on July 1, 2019 for $64,000. The company did not elect Sec 179 expensing and elects out of bonus depreciation. What is depreciation for 2019 and each subsequent year? Luxury Auto Limitations. In 2019, Luby Corporation acquires and places into service an automobile that it uses only for business purposes. Luby does not claim Sec. 179 expens- ing or bonus depreciation for the vehicle. Compute Luby's depreciation deduction for 2019 and each subsequent year. Assume the half-year convention applies. a. Luby purchases the automobile for $68,000. b. Luby purchases the automobile for $48,000. Luxury Auto Limitations. Tracy acquires an automobile (MACRS 5-year recovery) or March 1. 2019. He uses the automobile 70% in his business and 30% for personal use The automobile cost $76,000. No amount is expensed under Sec. 179. and Tracy elect out of bonus depreciation. a. What is depreciation for 2019 and each subsequent year? b. How would your answer to Part a change if the vehicle were a SUV with a gross vehicle weight rated (GVWR) of over 6,000 pounds and Tracy elected to expense the SUV under Sec. 179? r Auto Limitations-Leasing. Troy entered into a three-year lease of a luxury auto mobile on Ianuary 1, 2019. for use 80% in business and 20% for personal use. The EMY of the automobile at the inception of the lease was 361,000, and Troy made 12 monthly 1:10-40 1:10-41 I lease payments of $900 in 2019 and 2020. a. Before considering the effects of any lease inclusions amounts, what amount of le payments are deductible in 2019 and 2020 ivhat portion, if any, of the inclusion amount must reduce Troy's lease deduction is 2019 and 2020? uld your answers to Parts a and b change if the FMV of the auto was $15,000 and the monthly lease payments are $2007 www of Intangibles. On January 1 of the current year, Palm Corporation pur liliy unincorporated business for $600,000. The tangible ne ament state
