Question
Frankie owns an LLC for the sole purpose of obtaining passive income. During the current tax year, Frankie sold an apartment complex in March in
Frankie owns an LLC for the sole purpose of obtaining passive income. During the current tax year, Frankie sold an apartment complex in March in its 7th year of life, which had a cost basis of $1,250,000. In the month of April, he purchased a strip mall for $3,525,000. In order to keep security on the strip, he used a portion of the building as a security office. In that office, he placed into service an office desk (7-year) with a cost basis of $10,000 and a computer with a security-system software (5-year) with a cost basis of $5,000. What is the maximum depreciation deduction taken for this year? Consider Sec. 179 and bonus depreciation.
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