Question
Patrick Reed (SSN 269-09-9092) operates the Reed company as a sole proprietorship. The company has the following depreciable property. The automobile is used 100% for
Patrick Reed (SSN 269-09-9092) operates the Reed company as a sole proprietorship. The company has the following depreciable property. The automobile is used 100% for business. Patrick has written evidence of the business use, which was 19,280 miles in 2016. He has another vehicle he uses for personal use. The table below provide detailed inforamtion about the assets he acquired.
Date of acquisition | Item | Cost |
1/30/15 | Used Car | $24,000 |
3/10/16 | Garage for auto | $38,000 |
8/6/16 | New Machine | $12,460 |
12/1/14 | Used desk | $1,910 |
Additional information:
Patrick took the bonus deprecication in the current year.
For the used desk, Patrick used the midquarter convention when it was acquired in 2014.
Required:
a. Using the information, prepare and complete Patricks 2016 Form 4562, Depreciation and Amortizaiton. Treat the return as if you were a tax professional and the return would be filed with the IRS.
b. You must show your detailed work to support the numbers on the return in orde to get credit for this case.
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