Question
On April 5, 2015, Kinsey places in service a new automobile that cost $41,000. He does not elect 179 expensing, and he elects not to
On April 5, 2015, Kinsey places in service a new automobile that cost $41,000. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).
Below is the depreciation table to use for this problem.
Assume the following luxury automobile limitations:
year 1: $3,160;
year 2: $5,100.
Compute the total depreciation allowed for 2015 and 2016
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