Ch. 8 - Cost Recovery Question Example: Taxpayer places in service new equipment for $800,000 (7 year property) on August 15, and elects immediate expensing of the maximum amount: 2016 2018 Cost of equipment $ 179 deduction - 50% (of cost - Se ional 1st yr. depreciation Amount subject to MACRS $ MACRS rate .1429 (Table) Total cost recovery allowed in 2016 is $ What if same facts but under 2018 law? $ Ch. 8 - Cost Recovery Question Example: Taxpayer places in service new equipment for $800,000 (7 year property) on August 15, and elects immediate expensing of the maximum amount: 2016 2018 Cost of equipment $ 179 deduction - 50% (of cost - Se ional 1st yr. depreciation Amount subject to MACRS $ MACRS rate .1429 (Table) Total cost recovery allowed in 2016 is $ What if same facts but under 2018 law? $