Question
On April 1 Charlie bought a building for $150,000 ($120,000 for the building and $30,000 for the land). Charlie converted the building to a restaurant/take-
On April 1 Charlie bought a building for $150,000 ($120,000 for the building and $30,000 for the land). Charlie converted the building to a restaurant/take- out pizza place. Charlie paid for the following items in April to convert the building: Remodeling costs $15,000 New flooring $8,000 Monthly cleaning $300 In April Charlie also purchased new kitchen equipment for $12,000 and new office equipment for $8,000. Charlie then purchased dining room tables and chairs for $3,000. In June, Charlie purchased a delivery truck for $45,000. In addition he paid $1,000 to have it painted with his business logo and spent $2,000 to have it customized to hold pizzas; keeping them warm during delivery. Charlie parks the truck at home each night to keep it safe. From June to December he used the truck 90% for business and 10% personal use. Assume the delivery truck is not a luxury auto. What is the maximum amount of depreciation Charlie can deduct on Schedule C if he does not want to use Section 179 expense or bonus depreciation? Show all your work for each depreciable item and then the total amount. Round all your answers.
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