a. The vehicle cost $35,000, and business use is 100 percent (ignore 179 expense).
b. The vehicle cost $80,000, and business use is 100 percent.
c. The vehicle cost $80,000, and she used it 80 percent for business.
Part 1 of 6 Required information [The following information applies to the questions displayed below) Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions including S179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all!: (Use MACRS Table 1. Table 2. and Exhibit 10-10.) 1 point Sed pbook a. The vehicle cost $35,000, and business use is 100 percent (gnore $179 expense) Year Depreciation deduction 2021 2022 Table 1 MACRS Half-Year Convention 20-Year Year 1 3.750% Year 2 Year 3 7.219 6.677 Year 4 6.177 Year 5 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 5.91 5.90 5.91 2.95 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 1093 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5. Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 1197 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.719 Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 MacBook Pro ESC c G Search or type URL $ ! 1 @ 2 # 3 % 5 4 6 30.00 18.00 Year 2 Year 3 Year 4 Year 5 Year 6 23.47 16.76 11.97 11.37 11.37 8.87 4.26 Year 7 8.87 8.87 3.34 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year Placed in Service Year 2021 2020 2019 2018 1 10.100 10,100 10.100 10.000 2 16.100 16.100 16,Toki 16.000 3 9.700 9,200 9.700 9.600 4 and after 3.700 5,700 5.76 5.760 "As of press day, the IRS had nor released the 2021 limutations for automobiles, so throughout the chapter we use the same limitano as in 2020 for 2021 *$8,00 addirienal depreciation is allowed when bonus depreciation is claimed (5768X2XP)
