Individual Tax Questions

1 A) Robles Enterprises, a multi-location printing company, purchased the following during 2019:

New printers costing $1,080,000.

• How much is the maximum cost recovery deduction for 2019?
• Assuming they claimed the maximum in 2019, how much is deductible in 2023?
• Assuming the photocopiers were sold for $75,000 on April 18, 2021, how much is the 2021 cost recovery deduction?
• Answer the above questions if Robles elects out of bonus depreciation and does not elect under 179.

1 B) Company Presidents used vehicle (2017 Jaguar XL weighing 4,800 pounds) costing $36,500.

• How much is the maximum cost recovery deduction for 2019, assuming the owners have adequate net income?
• Assuming they claimed the maximum in 2019, how much is deductible in 2021?

1 C) Nonresidential real estate purchased for $875,000 ($155,000 assigned to land); placed in service May 18, 2019. How much is deductible in 2019? How much for 2028? How much for 2030 if the real estate is sold on January 2, 2030?

1 D) Robles purchased a competing business in April 2018, including $337,500 allocated to goodwill. How much is deductible in 2019?

Question 2

Joseph Enterprises purchased twelve desktop computers for business use. Each computer cost $1,350. As you recommended, Joseph Enterprises purchased each computer separately. Explain why you would provide this recommendation.