Question
Columbia LLC only purchased one asset this year. Columbia LLC was placed in service on July 9, 2021, with machinery (seven-year property) with a purchase
Columbia LLC only purchased one asset this year. Columbia LLC was placed in service on July 9, 2021, with machinery (seven-year property) with a purchase cost of $2,650,000 and an installation cost of $100,000. Columbia has a taxable income of $1,000,000. Calculate the maximum depreciation deduction, including §179 expensing (but ignoring bonus depreciation) for the year. (Round final answer to the nearest whole number.)
- Is the §179 expense depreciation limited by the amount of TPP placed in service? NO
- If so, what is the available §179 expense depreciation after any phase-out? ______________
- The cost basis of the machinery is ____________2,750,000_________.
- The adjusted basis of the machinery is ______________ = (24) _____2750000 minus any
(23) §179 expense depreciation ______________.
- Is the machinery subject to the mid quarter convention? ____________
- The regular depreciation calculation is (a)_____________ equal to the adjusted basis
(25)____________ x (b)_______% using Depreciation Table # (c)____.
- Is there a §179 expense depreciation carryforward? ________
- (a)______________ taxable income minus (27a)_______________ regular depreciation = _______________ the max §179 expense that can be used this year without creating a net operating loss (NOL).
- The amount of any §179 expense depreciation carryforward _________________=
(23)____________ minus (29)____________
- If there is a §179 expense depreciation carryforward, how long can it be carried forward?_________
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