Problem 8-40 (Algorithmic) (LO. 2, 3,9) On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $359,600 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 2018, his business generated a ne income of $431,520 before any $ 179 immediate expense election If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019: Total cost recovery deduction in 2020: $ All work saved. Email Instructor Save and Exit Submit Assignment for Grading eBook Video Calculator 25 yrs. 39 yrs. S/L 25-year property h Residential rental 27.5 yrs. MM S/L 27.5 yrs. MM property S/L I Nonresidential real MM S/L property MM S/L Section C-Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year S/L c 30-year MM S/L d 40-year 40 yrs. MM S/L Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28.. 21 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions... 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs.. For Paperwork Reduction Act Notice, see separate Instructions. Cat. No. 12906N Form 4562 (2019) 12 yrs. 30 yrs. 22 23 Problem 8-40 (Algorithmic) (LO. 2, 3,9) On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $359,600 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 2018, his business generated a ne income of $431,520 before any $ 179 immediate expense election If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019: Total cost recovery deduction in 2020: $ All work saved. Email Instructor Save and Exit Submit Assignment for Grading eBook Video Calculator 25 yrs. 39 yrs. S/L 25-year property h Residential rental 27.5 yrs. MM S/L 27.5 yrs. MM property S/L I Nonresidential real MM S/L property MM S/L Section C-Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year S/L c 30-year MM S/L d 40-year 40 yrs. MM S/L Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28.. 21 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions... 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs.. For Paperwork Reduction Act Notice, see separate Instructions. Cat. No. 12906N Form 4562 (2019) 12 yrs. 30 yrs. 22 23
