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Posted on Sep 09, 2024

Chaz Corporation has taxable income in 2019 of $243,500 for purposes of computing the $179 expense and acquired the following assets during the year: Placed

Chaz Corporation has taxable income in 2019 of $243,500 for purposes of computing the $179 expense and acquired the following assets during the year: Placed in Basis Asset Service September 12 $ February 10 August 21 Office furniture 751,000 922,000 61,000 Computer equipment Delivery truck Qualified improvement property 1,523,000 September 30 $3,257,000 Total What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1 Table 2 Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.) 62 Maximum total depreciation deduction Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 20-Year 7-Year 10-Year 15-Year Year 1 14.29 % 33.33% 20.00% 5.00% 3.750% 10.00% Year 2 44.45 32.00 9.50 7.219 24.49 18.00 Year 3 14.81 8.55 6.677 19.20 17.49 14.40 Year 4 7.41 7.70 6.177 1.52 12.49 11.52 Year 5 11.52 5.713 8.93 9.22 6.93 Year 6 5.285 5.76 7.37 6.23 8.92 Year 7 4.888 8.93 6.55 5.90 Year 8 4.522 4.46 6.55 5.90 Year 9 4.462 5.91 6.56 Year 10 4.461 6.55 5.90 Year 11 4.462 3.28 5.91 Year 12 4.461 5.90 Year 13 4.462 5.91 4.46 Year 14 5.90 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 7-Year 5-Year Year 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.3 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 109 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5.Year 7-Year Year I 25.00% 1785% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 1137 11.97 Year 5 11.37 887 Year 6 426 887 Year 7 887 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 10.71 % Year I 15.00% 25.51 34.00 Year 2 18.22 Year 3 20.40 12.24 13.02 Year 4 930 Year 5 11.30 7.06 885 Year 6 8.86 Year 7 553 Year 8 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year 3.57% 5.00% Year I 27.55 Year 2 38.00 19.68 22.80 Year 3 14.06 Year 4 13.68 10.04 10.94 Year 5 8.73 Year 6 9.58 8.73 Year 7 764 Year 8 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-275 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 10 Month 11 Month 12 Month 7 Month 8 Month 9 3.485% Year 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1364% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 20 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 21 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 Year 22 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 Year 23 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.636 3.637 3.636 3.636 Year 24 3.637 3.636 3.636 3.636 3,637 3.637 3.636 3.636 3.637 3.637 3.637 3.636 Year 25 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.636 3.636 Year 26 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.636 3.637 3.637 Year 27 3.636 3.485 3.636 3.636 3.636 2.273 2576 2.879 3.182 3.636 3.636 3.636 197 Year 28 0.758 0.152 0.455 1061 1364 L667 Year 29 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 3.042% Year 1 2.778% 2.513% 2.249% 1,984% 1.720% 1455% 1.190% 0.926% 0.661% Year 2-7 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year 8 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 10 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 11 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 13 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 16 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 18 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 19 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 20 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 22 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 23 3.175 3.174 3.174 3.174 3.175 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 Year 24 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 Year 25 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 Year 27 3.175 3.174 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 Year 28 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 Year 30 3.175 3.175 3.175 3.175 3.174 3.174 3.174 3.175 3.175 3.174 3.174 Year 31 2.778 3.042 3.175 3.174 3.174 1.984 2.513 3.175 2.249 Year 32 1.720 0.926 0.132 0.397 0.661 Year 33