Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5)

During 2020, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:

Item	Date Acquired	Cost
Manufacturing equipment (7 year)	June 2	$50,000
Office furniture	September 15	8,000
Office computer	November 18	2,000
Passenger automobile (used 85 percent for business)	May 31	55,000
Warehouse	July 23
Building		170,000
Land		135,000

Pepe uses the accelerated depreciation method under MACRS and takes bonus depreciation.

Complete Form 4562, Depreciation and Amortization to determine the depreciation expense.

If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Enter amounts as positive numbers.

Click here to access the depreciation tables and here to view Table 8.1: Recovery Periods for Assets Placed in Service After 1986 and Annual automobile depreciation limitations.

What goes on line 14 part II Form 4562 ? Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year.

What goes on line 21 and line 22 Part IV Form 4562 ?

21	Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			21
22	Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations

What goes on part V Form 4562?

Part V		Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for entertainment,
		recreation, or amusement.)
		Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section ADepreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)

24a Do you have evidence to support the business/investment use claimed? Yes No

24b If "Yes," is the evidence written? Yes No

(a)		(b)	(c)	(d)	(e)	(f)	(g)		(h)		(i)
Type of property (list vehicles first)		Date placed in service	Business/ investment use percentage	Cost or other basis	Basis for depreciation (business/ investment use only)	Recovery period	Method/ Convention		Depreciation deduction		Elected section 179 cost
25	Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use. See instructions . . . . . . . . . . .							25	fill in the blank 7
26	Property used more than 50% in a qualified business use:
			%
Passenger automobileOffice computerOffice furniturePassenger automobile		05/2011/2009/2005/20	fill in the blank 10%	fill in the blank 11	fill in the blank 12	5 yrs.7 yrs.9 yrs.5 yrs.	HYMQDBHYDBMQHY		fill in the blank 15		fill in the blank 16
			%
27	Property used 50% or less in a qualified business use:
		%					S/L -
		%					S/L -
		%					S/L -
28	Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . . . . . . . . . . .							28

Thanks