Question
I need help on this homework question. I don't think I am getting the numbers right. Ted is in the rental real estate business. During
I need help on this homework question. I don't think I am getting the numbers right.
Ted is in the rental real estate business. During 2015, Ted purchased and placed in service the following assets:
-Apartment building costing $300,000 (exclusive of $80,000 land): Place in service on May 12 with a 27.5 year MACRS recovery period.
-Office furniture costing $23,000: Placed in service on April 10 with a 7 year MACRS recovery period
-Office equipment costing $15,000: Placed in service on November 1 with a 5 year MACRS recovery period.
A) What are Ted's total depreciation deductions in 2015 assuming he does not elect Sec. 179 expensing?
B) What are Ted's total depreciation deductions in 2015 assuming he elects Sec. 179 expensing in 2015 for $23,000 on the furniture and $2,000 on the equipment? Assume Ted elects out of bonus depreciation deductions on all qualifying properties.
C) What are Ted's total depreciation deductions in 2015 assuming he elects Sec. 179 expensing in 2015 for $10,000 on the furniture and $15,000 on the equipment?
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