Question
Graham started his own landscaping business this year. He is interested in getting the greatest deduction he can on the capital-asset purchases he made this
Graham started his own landscaping business this year. He is interested in getting the greatest deduction he can on the capital-asset purchases he made this year. He provides you with the following list of purchases:
Item | Date of Purchase/ Contribution | Cost |
Graham's personal contribution of riding lawnmower | 5/4/xx | $5,878 FMV at contribution $4,200 |
New zero-turn super mower | 4/7/xx | $15,989 |
Used backhoe | 9/23/xx | $26,000 |
New dump truck | 10/8/xx | $45,763 |
Used garage | 11/9/xx | $78,555 |
New computer | 7/19/xx | $3,450 |
Used Ford Focus | 6/6/xx | $12,456 (60% business use) |
Additional Information
The taxable income before any depreciation deduction for the year is $158,000.
Task
Using relevant tax laws and regulations, identify and explain the maximum depreciation deduction for Grahams business.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started