Question
Dave placed in service a brand-new (original use) business asset (5-year property) on 4/02/ 2016 , at a cost of 2,350,000. This was the only
Dave placed in service a brand-new (original use) business asset (5-year property) on 4/02/2016, at a cost of 2,350,000. This was the only asset placed in service in 2016. Dave remembers his accountant said something about taking full advantage of 179 and 168(k) in 2016 but he doesnt have the depreciation deduction amount for 2016 in his files. Dave does remember that his taxable income in 2016 was $9,000,000 and that his accountant used MACRS not straight-line cost recovery. Based on this information and assuming Daves accountant would have tried to expense as much of the asset as he could in 2016, calculate what the total depreciation deduction was for 2016. Be as brief/succinct as possible in providing your answer.
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