On April 20,2021, Javier Sanchez purchased and placed in service a new 7 -year class asset costing $316,400 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use $179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost, During 2021, his business generated a net income of $379,680 before any 5 . 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2021 and 2022 . Total cost recovery deduction in 2021: 1 Total cost recovery deduction in 2022:\$ b. Compiete Javier's Form 4562 (page 1) for 2021 , Note: For 2021, the maximum 5,179 is $1,050,000 and the threshold arnount is $2,620,000, If an amount is zero, enter " 0 ". Enter amounts as positive numbers. Part1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instru 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0 -. If married filing separately, see instructions e deduction. Add lines 9 and 10 , but don't enter more than line 11 . 12 wed deduction to 2022. Add lines 9 and 10 , less line 12 ... 13 0 ir Part III below for listed property. Instead, use Part V. epreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) on allowance for qualified property (other than listed property) placed in service during the tax year (see to section 168(f)(1) election on (including ACRS) \begin{tabular}{|c|} \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline \end{tabular} 2S Depreciation (Don't include listed property. See instructions.) Section A tions for assets placed in service in tax years beginning before 2021 cting to group any assets placed in service during the tax year into one or more general asset accounts, check 17 Section B-Assets Placed in Service During 2021 Tax Year Using the General Depreciation System (b) Month and year (c) Basis for depreciation placed in service (business/investment use only-see instructions) (d) Recovery (e) (f) (g) Depreciation period Convention Method deduction Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System isted property, Enter amount from line 28...... Add amounts from line 12 , lines 14 through 17 , lines 19 and 20 in column (9), and line 21 . Enter here and on the otal. Total. Add amounts from ine 12, lines 14 through 17, lines 19 and 20 in colum For assets shown above and ploced in service during the current year, enter the portion of the basis atrinbutoble to section 263A costs Paperwork Reduction Act Notice, see separate instructions. Cat, No, 12906N 23 22 On April 20,2021, Javier Sanchez purchased and placed in service a new 7 -year class asset costing $316,400 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use $179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost, During 2021, his business generated a net income of $379,680 before any 5 . 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2021 and 2022 . Total cost recovery deduction in 2021: 1 Total cost recovery deduction in 2022:\$ b. Compiete Javier's Form 4562 (page 1) for 2021 , Note: For 2021, the maximum 5,179 is $1,050,000 and the threshold arnount is $2,620,000, If an amount is zero, enter " 0 ". Enter amounts as positive numbers. Part1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instru 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0 -. If married filing separately, see instructions e deduction. Add lines 9 and 10 , but don't enter more than line 11 . 12 wed deduction to 2022. Add lines 9 and 10 , less line 12 ... 13 0 ir Part III below for listed property. Instead, use Part V. epreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) on allowance for qualified property (other than listed property) placed in service during the tax year (see to section 168(f)(1) election on (including ACRS) \begin{tabular}{|c|} \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline \end{tabular} 2S Depreciation (Don't include listed property. See instructions.) Section A tions for assets placed in service in tax years beginning before 2021 cting to group any assets placed in service during the tax year into one or more general asset accounts, check 17 Section B-Assets Placed in Service During 2021 Tax Year Using the General Depreciation System (b) Month and year (c) Basis for depreciation placed in service (business/investment use only-see instructions) (d) Recovery (e) (f) (g) Depreciation period Convention Method deduction Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System isted property, Enter amount from line 28...... Add amounts from line 12 , lines 14 through 17 , lines 19 and 20 in column (9), and line 21 . Enter here and on the otal. Total. Add amounts from ine 12, lines 14 through 17, lines 19 and 20 in colum For assets shown above and ploced in service during the current year, enter the portion of the basis atrinbutoble to section 263A costs Paperwork Reduction Act Notice, see separate instructions. Cat, No, 12906N 23 22