2019

Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are:

Gross sales $352,000

Returns and allowances 4,000

Expenses: Beginning inventory (at cost) $ 85,000

Add: purchases 101,000 Cost of goods available for sale $186,000

Less: ending inventory (at cost) 75,000

Cost of goods sold $111,000

Rent 24,200

Insurance 1,800

Legal and accounting fees 5,600

Payroll 56,430

Payroll taxes 4,400

Utilities 2,100

Office supplies 750

Advertising 6,200

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: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Calculate the Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. Calculate the MACRS depreciation.