Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Greta, a calendar-year taxpayer, acquires 5-year tangible personal property in 2009 and places the property in service on the following schedule: Date placed in service

Greta, a calendar-year taxpayer, acquires 5-year tangible personal property in 2009 and places the property in service on the following schedule: Date placed in service Acquisition Cost January 15 $ 80,000 May 25 $300,000 November 8 $258,000 Greta elects to expense the maximum under Section 179, and selects the property placed into service on November 8. She elects out of bonus depreciation. Taxable income before section 179 is $300,000. What is the total cost recovery deduction (depreciation and Sec. 179) for 2009? On June 30, 2009, Julia purchased office furniture costing $220,000 and computers with a cost of $50,000. She elects out of bonus depreciation, but uses Sec. 179. Her business income is $300,000 without considering Sec. 179. How should she allocate the 179 election in order to maximize her total cost recovery deductions (depreciation and Sec. 179) for 2009

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers, Acquisitions, And Corporate Restructurings

Authors: Patrick A Gaughan

7th Edition

1119380766, 9781119380764

More Books

Students also viewed these Accounting questions

Question

List the characteristics of wellset goals.

Answered: 1 week ago