Bonus depreciation in 2023 -

In 2023, taxpayers are allowed to deduct 80 percent cost recovery of any qualified property that is placed in service (100 percent in 2022).

McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $304,200 in 2023 . The taxable income of the business for the year is $97,900 before consideration of any $179 deduction. If an amount is zero, enter " 0 ". a. Calculate McKenzie's 179 expense deduction for 2023 and any carryover to 2024. \$ 179 expense deduction for 2023: 5 \$ 179 carryover to 2024:$ b. How would your answer change if McKenzie decided to use additional firstyear (bonus) depreciation on the equipment instead of using $179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: \$ MACRS cost recovery for 2023: \$ Total cost recovery for 2023:$ \begin{tabular}{|l|l|l|} \hline Use 5179 Exclusively & Use Both \$ 179 and Bonus Depreciation & UseBonusDepreciationExclusively \\ \hline \$0 & $1,160,000TotalQualifyingPropertyPlacedinService(2023) \\ \hline \end{tabular}