Lopez acquired a building on June 1, 2015, for $8,284,900. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate. $ b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate. S Exhibit 5.5 MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table * ) 3-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 58.33 41.67 25.00 8.33 2 27.78 38.89 50.00 61.11 5-Year Second Quarter Third Quarter Fourth Quarter Recovery Year First Quarter 1 35.00 25.00 15.00 5.00 2. 26.00 30.00 34.00 38.00 7-Year Second Quarter Third Quarter Fourth Quarter Recovery Year First Quarter 1 25.00 17.85 10.71 3.57 2. 21.43 23.47 25.51 27.55 Exhibit 5.6 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property + Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 2 3 4 5 6 7 9 10 11 12 1 3.485 3.182 2.879 2.576 2.273 1.970 1.667 1.364 1.061 0.758 0.455 0.152 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 19-27 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 28 1.970 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.667 1 8 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 9 10 11 12 1 3.042 2.778 2.513 2.249 1.984 1.720 1.455 1.190 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 20-31 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 32 1.720 1.984 2.249 2.513 2.778 3.042 3.175 3.175 3.175 3.175 3.175 3.175 33 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 9 10 11 12 1 2.461 2.247 2.033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0.321 0.107 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461 *The official tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances, this will produce a difference of 0.001 for the last digit when compared with the official tables. Exhibit 5.7 MACRS Straight-Line Depreciation for Personal Property and Qualified Improvement Property Assuming Half-Year Convention Last Recovery Year For Property Placed in Service after December 31, 1986 Other Recovery Years MACRS Class % First Recovery Years % Year 3-year 16.67 2-3 33.33 Year % 4 16.67 5-year 10.00 2-5 20.00 6 10.00 7-year 7.14 27 14.29 8 8 7.14 10-year 5.00 2-10 10.00 11 5.00 15-year 3.33 2-15 6.67 16 3.33 20-year 2.50 2-20 5.00 21 2.50 Note: The last two rows are used for qualified improvement property (15-year normal MACRS; 20-year ADS). Exhibit 5.8 ADS for Alternative Minimum Tax: 150% Declining-Balance for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table*) Recovery 3-Year 5-Year 7-Year 9.5-Year 10-Year 12-Year Year 150% 150% 150% 150% 150% 150% 1 25.00 15.00 10.71 7.89 7.50 6.25 2 37.50 25.50 19.13 14.54 13.88 11.72 3 25.00** 17.85 15.03 12.25 11.79 10.25 4 12.50 16.66** 12.25** 10.31 10.02 8.97 5 16.66 12.25 9.17** 8.74** 7.85 12.25 9.17 8.74 7 12.25 9.17 8.74 7.33 8 6.13 9.17 8.74 7.33 9 9.17 8.74 7.33 10 9.16 8.74 7.33 4.37 7.32 7.33 3.66 6 8.33 7.33** 11 12 13 * The figures in this table are taken from the official table that appears in Rev.Proc. 87-57, 1987-2 C.B. 687. Because of its length, the complete table is not presented. **Switchover to straight-line depreciation. Exhibit 5.10 ADS Straight-Line for Real Property Assuming Mid-Month Convention (Percentage Rates) For Property Placed in Service after December 31, 2017; 30-Year Residential Rental Property + Recovery Month Placed in Service Year 2 4 5 6 8 9 10 11 12 0.417 1 2-30 31 1 3.194 3.333 0.139 2.917 3.333 0.417 3 2.639 3.333 0.694 2.361 3.333 0.972 2.083 3.333 1.250 1.806 3.333 1.528 7 1.528 3.333 1.806 1.250 3.333 2.083 0.972 3.333 2.361 0.694 3.333 2.639 3.333 2.917 0.139 3.333 3.194 10 11 For Property Placed in Service after December 31, 1986; 40-Year Nonresidential Real Property* Recovery Month Placed in Service Year 1 2 3 4 5 7 8 9 1 2.396 2.188 1.979 1.771 1.563 1.354 1.146 0.938 0.729 2-40 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 41 0.104 0.312 0.521 0.729 0.937 1.146 1.354 1.562 1.771 0.521 2.500 1.979 0.313 2.500 2.187 12 0.104 2.500 2.396 Also used for residential rental property placed in service before 2018