Mr. Jabari Johnson 100 Morningside Clinton, MS 39058 Dear Mr, Johnson: I am responding to your inquiry concerning the amount of cost recovery you may deduct in the first year of operation of a new taxi. If the automobile is purchased at the beginning of 2022 for $68,000, the total cost recovery deductions in the first year would be 1 Because the car will be used as a taxi, it subject to the cost recovery limitations imposed on passenger automobiles. This amount of cost recovery assumes that your income frop your taxi business before considering this cost recovery would be at least $ , and an election is made under 5179 to expense the allowable amount. Alternatively, additional first-year (bonus) depreciation could be taken business income limitation. If you need additional information or clarification of our calculations, please contact me. Sincerely yours, Mr. Jabari Johnson 100 Morningside Clinton, MS 39058 Dear Mr, Johnson: I am responding to your inquiry concerning the amount of cost recovery you may deduct in the first year of operation of a new taxi. If the automobile is purchased at the beginning of 2022 for $68,000, the total cost recovery deductions in the first year would be 1 Because the car will be used as a taxi, it subject to the cost recovery limitations imposed on passenger automobiles. This amount of cost recovery assumes that your income frop your taxi business before considering this cost recovery would be at least $ , and an election is made under 5179 to expense the allowable amount. Alternatively, additional first-year (bonus) depreciation could be taken business income limitation. If you need additional information or clarification of our calculations, please contact me. Sincerely yours