Jack owns and operates Puget Tours, a sight$-$seeing company that provides boat$-$tours in Washington State for whale watchers. Jack purchases two boats for $$1,240,000$ each in $2020$ for a total of $$2,480,000.$ He purchased a blue boat on May $15,2020.$ He then purchased a red boat on December $20,$

$2020.$ Jack would like to use the maximum $179$ Deduction for the purchase. Jack would also like to forgo any applicable bonus depreciation. Please provide a written recommendation to Jack that discusses the tax implications of his purchase.

You may find it helpful to discuss the following topics in your recommendation to Jack:

$1.$ Jack$$s basis for the boats.

$2.$ Whether Jack and his boats qualify for the $179$ Deduction.

$3.$ Whether Jack has avoided the limitations for the $179$ Deduction.

a$.$ Current inflation adjusted limitation amounts are located in Notice $2019-44$ in the examination folder.

$4.$ Recommend how Jack should allocate his $179$ Deduction among the two boats.

Which MACRS depreciation method Jack should use $($Mid$-$year, Mid$-$quarter, etc$).$