Question
On June 5, 2020, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which
On June 5, 2020, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single-member LLC (Sanchez Landscaping LLC). During 2020, his business generated net income of $945,780 before any 179 immediate expense election.
Rather than using bonus depreciation, Javier would like to use 179 to expense $200,000 of this asset and then use regular MACRS to recover the remaining cost. Given this information, determine the cost recovery deductions that Javier can claim with respect to this asset in 2020 and 2021.
Complete Javier's Form 4562 for 2020.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started