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Luxury Auto Limitations. Tracy acquires an automobile (MACRS 5-year recovery) on March 1, 2013. He uses the automobile 70% of the time in his business
Luxury Auto Limitations. Tracy acquires an automobile (MACRS 5-year recovery) on March 1, 2013. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile cost $36,000, and no amounts are expensed under Sec. 179 or bonus depreciation. a. What is depreciation for 2013-2018 and any subsequent years? b. How would your answer to Part a change if the vehicle were a SUV with a gross vehicle weight rated (GVWR) of over 6,000 pounds and Tracy elected to expense the SUV under Sec. 179? c. What is the amount deductible in 2013 and 2014 if the taxpayer elects to take advantage of bonus depreciation? Additional Requirements Level of Detail: Show all work Other Requirements: Please answer in high detail and relate with CFR or regulations on Word doc. Additional Requirements Level of Detail: Show all work Other Requirements: Please reference with CFR and/or regulations related to response to
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