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please help find the adjusted basis for January 1, 2022 On July 1,2018 , Brent purchases a new automobile for $40,000. He uses the car
please help find the adjusted basis for January 1, 2022
On July 1,2018 , Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car for business purposes as follows: 8,000 miles in 2018, 19,000 miles in 2019, 20,000 miles in 2020, and 15,000 miles in 2021. Determine Brent's basis in the business portion of the auto as of January 1, 2022, under the following assumptions: If required, round answers to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year, Click here to access the basis adjustment table. 2018:2019:92020:92021:9 Brent's adjusted basis in the auto on January 1,2022, is 5 Feodback 4 Cleck Mr Work A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. A basis at b. Brent uses the actual cost method. [Assume that no $179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2018 is as follows: $10,000 (first year), $16,000 (second year), $9,600 (third year), and $5,760 (fourth year).] Compute his depreciation deductions for year. Click here to access the depreciation table. 2018:2019:12020:2021: Brent's adjusted basis in the auto on January 1,2022, is $ x \begin{tabular}{ll} \hline Year & Rate per Mile \\ \hline 2022 & 26 cents \\ 2021 & 26 cents \\ 2020 & 27 cents \\ 2019 & 26 cents \\ 2018 & 25 cents \\ \hline \end{tabular} Assuming Half-Year Convention (Percentage Rates) Step by Step Solution
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