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1,300 3. In early 2018, Samantha decided to renovate the waiting room. On May 10, she spent $10,400 for new chairs, a sofa, various lamps,

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1,300 3. In early 2018, Samantha decided to renovate the waiting room. On May 10, she spent $10,400 for new chairs, a sofa, various lamps, coffee bar, etc. Samantha follows a policy of claiming as much depreciation as soon as possible. The old furnishings were thrown away or given to customers. For tax purposes, the old furnishings had a zero basis. Tuming Heads is located in a building Samantha had constructed at 480 Laurel Street in March 2004. The shop was built for a cost of $300,000 on a lot she purchased earlier for $35.000. Except for a down payment from savings, the cost was financed by a 20-year mortgage. For tax purposes, MACRS depreciation is claimed on the building. During 2018, the following expenses were attributable to the property: Repainting (both exterior and interior) $8.000 Repairs (plumbing and electrical) 1,900 relate to buil. deduc. exper In May (after her accident settlement discussed in item 10 below), Samantha- * paid the outstanding principal on the business mortgage. To do so, she incurred a ct prepayment penalty of $4,400. Prior to paying off the mortgage, she paid regular interest on the mortgage in 2018 of $6,000. Scha (Stian purchase improve house 1,300 3. In early 2018, Samantha decided to renovate the waiting room. On May 10, she spent $10,400 for new chairs, a sofa, various lamps, coffee bar, etc. Samantha follows a policy of claiming as much depreciation as soon as possible. The old furnishings were thrown away or given to customers. For tax purposes, the old furnishings had a zero basis. Tuming Heads is located in a building Samantha had constructed at 480 Laurel Street in March 2004. The shop was built for a cost of $300,000 on a lot she purchased earlier for $35.000. Except for a down payment from savings, the cost was financed by a 20-year mortgage. For tax purposes, MACRS depreciation is claimed on the building. During 2018, the following expenses were attributable to the property: Repainting (both exterior and interior) $8.000 Repairs (plumbing and electrical) 1,900 relate to buil. deduc. exper In May (after her accident settlement discussed in item 10 below), Samantha- * paid the outstanding principal on the business mortgage. To do so, she incurred a ct prepayment penalty of $4,400. Prior to paying off the mortgage, she paid regular interest on the mortgage in 2018 of $6,000. Scha (Stian purchase improve house

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