Information:

- Bruce doesn't want IRC Sec 179 or first-year bonus depreciation but wants us to depreciate as much of his capital expenditures as legally possible.

The only thing I was able to think of was giving him Sec 195 for the pre-startup investigation expense and I got a 4,000 deductible for him. I know I would have to amortize the rest so I divided it by 180 months times the (5/12) months he was active. I don't know if I'm correct can you please show me how I can give him the best depreciation from his capital expenditures?

In March 2019, Bruce decided to start his own business; a retail bicycle shop to be located in NYC near Central Park called Bruce's Bikes. On April 20, 2019, Bruce signed a 15-year lease at a monthly rental rate of $12,000, effective May 01, 2019, for retail space on 110th Street and CPW. The lease provided that Bruce was responsible for the costs of improving the retail space for its intended use. The terms of the lease also provided that the first three months were rent-free so that Bruce could complete the construction needed to operate a retail bike shop. When Bruce executed the lease he paid the landlord $48,000 as a security deposit. On May 01, 2019, Bruce paid a contractor $300,000 to provide all construction work relating to the build-out, which included electrical, plumbing, and carpentry. On June 01, 2019, Bruce purchased the following assets for the business: Equipment $ 45,000 Furniture & Fixtures $ 30,000 Computer Equipment $ 28,000 Although Bruce planned on a grand opening on July 01, 2019, the construction was not completed until July 21, 2019, causing Bruce to delay the grand opening until August 01, 2019. On August 01, 2019, Bruce purchased a new truck for $47,000, which weighs 17,500 pounds, to be used 100% in the business for pickups and deliveries. For 2019, the bike shop generated the following revenues and incurred the following expenses: Sales, Rental, & Service Revenue Inventory purchased Inventory on hand at December 31, 2019 Rent from (August 01 - December 31, 2019) Salaries Supplies Utilities Promotional expense Travel to Trade Shows Meals & Entertainment Postage and Delivery Telephone Attorney fees Pre-startup investigative expense $ 395,000.00 200,000.00 95,000.00 60,000.00 73,000.00 13,800.00 4,250.00 8,200.00 6,500.00 3,600.00 2,300.00 4,875.00 9,200.00 51,000.00 In March 2019, Bruce decided to start his own business; a retail bicycle shop to be located in NYC near Central Park called Bruce's Bikes. On April 20, 2019, Bruce signed a 15-year lease at a monthly rental rate of $12,000, effective May 01, 2019, for retail space on 110th Street and CPW. The lease provided that Bruce was responsible for the costs of improving the retail space for its intended use. The terms of the lease also provided that the first three months were rent-free so that Bruce could complete the construction needed to operate a retail bike shop. When Bruce executed the lease he paid the landlord $48,000 as a security deposit. On May 01, 2019, Bruce paid a contractor $300,000 to provide all construction work relating to the build-out, which included electrical, plumbing, and carpentry. On June 01, 2019, Bruce purchased the following assets for the business: Equipment $ 45,000 Furniture & Fixtures $ 30,000 Computer Equipment $ 28,000 Although Bruce planned on a grand opening on July 01, 2019, the construction was not completed until July 21, 2019, causing Bruce to delay the grand opening until August 01, 2019. On August 01, 2019, Bruce purchased a new truck for $47,000, which weighs 17,500 pounds, to be used 100% in the business for pickups and deliveries. For 2019, the bike shop generated the following revenues and incurred the following expenses: Sales, Rental, & Service Revenue Inventory purchased Inventory on hand at December 31, 2019 Rent from (August 01 - December 31, 2019) Salaries Supplies Utilities Promotional expense Travel to Trade Shows Meals & Entertainment Postage and Delivery Telephone Attorney fees Pre-startup investigative expense $ 395,000.00 200,000.00 95,000.00 60,000.00 73,000.00 13,800.00 4,250.00 8,200.00 6,500.00 3,600.00 2,300.00 4,875.00 9,200.00 51,000.00