Question
On April 5, 2020, Kinsey places in service a new automobile that cost $48,500. He does not elect 179 expensing, and he elects not to
On April 5, 2020, Kinsey places in service a new automobile that cost $48,500. 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).
Click here to access the depreciation table to use for this problem.
Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar.
Compute the total depreciation allowed for:
2020: | $ |
2021: | $ |
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