On May 31, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $489,200 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 $587,040 before any 179 immediate expense election.

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: $ Total cost recovery deduction in 2022: $

b. Complete Javier's Form 4562 (page 1) for 2021.

Note: For 2021, the maximum 179 is $1,050,000 and the threshold amount is $2,620,000. If an amount is zero, enter "0". Enter amounts as positive numbers.

1	Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						1
2	Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						2
3	Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .						3
4	Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						4
5	Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions						5
6	(a) Description of property	(b) Cost (business use only)		(c) Elected cost
	Landscaping equipment

7	Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . .		7
8	Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . .						8
9	Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						9
10	Carryover of disallowed deduction from line 13 of your 2020 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						10
11	Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) . . . . . .						11
12	Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . . .						12
13	Carryover of disallowed deduction to 2022. Add lines 9 and 10, less line 12 . . . .			13