Question
How to figure out the MACRS deductions for assets placed in service in tax years beginning before 2018 for form 4562 Sherrys bookkeeper has provided
How to figure out the MACRS deductions for assets placed in service in tax years beginning before 2018 for form 4562
Sherrys bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2018.
Sherrys bookkeeper has provided the following book-basis fixed asset rollforward:
Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis) | ||||||||||||
DEPR | COST | 2016 | 2017 | 2018 | ACCUM | NET BOOK | ||||||
ASSET | IN SERVICE | METHOD | LIFE | BASIS | DEPR | DEPR | DEPR | DEPR | VALUE | |||
CASH REGISTER | 2/15/2016 | SL | 5 | 9,800.00 | 1,796.67 | 1,960.00 | 1,960.00 | 5,716.67 | 4,083.33 | |||
2016 TOTAL ADDITIONS | 9,800.00 | 1,796.67 | 1,960.00 | 1,960.00 | 5,716.67 | 4,083.33 | ||||||
RETAIL FIXTURES | 10/12/2017 | SL | 7 | 4,500.00 | 160.71 | 642.86 | 803.57 | 3,696.43 | ||||
FURNITURE | 10/12/2017 | SL | 7 | 3,600.00 | 128.57 | 514.29 | 642.86 | 2,957.14 | ||||
2017 TOTAL ADDITIONS | 8,100.00 | - | 289.28 | 1,157.15 | 1,446.43 | 6,653.57 | ||||||
TOTAL | 17,900.00 | 1,796.67 | 2,249.28 | 3,117.15 | 7,163.10 | 10,736.90 | ||||||
DELIVERY TRUCK | 6/1/2018 | SL | 5 | 32,000.00 | 3,733.33 | 3,733.33 | 28,266.67 | |||||
DESK AND CABINETRY | 6/1/2018 | SL | 7 | 17,000.00 | 1,416.67 | 1,416.67 | 15,583.33 | |||||
COMPUTER | 6/1/2018 | SL | 5 | 3,500.00 | 408.33 | 408.33 | 3,091.67 | |||||
2018 TOTAL ADDITIONS | 52,500.00 | - | - | 5,558.33 | 5,558.33 | 46,941.67 | ||||||
TOTAL | 70,400.00 | 1,796.67 | 2,249.28 | 8,675.48 | 12,721.43 | 57,678.57 |
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