Refer to the Ethics & Equity information reflected on page 8-14 of the textbook. Prepare a discussion board post commenting on Joes plan. Your discussion will include references to outside information as necessary. You should also respond to two other discussion board responses.
Topic: Week 6 Discussion Boar x C Get Homework Help With Che X C Chegg eReader GRefer to "The Big Picture" at th x + C chegg.com/reader/9780357109700/371/ ** * : Search keywords, chapter or page # Q INUW HIVIU O paucu vlny 2.2 NV IZJAVUUII, V, V, VI LIIC 2Cu3 HIJCIVILE Uunny LIIC 1a quarter of the taxable year. As a result, the mid-quarter convention does not apply, and Dimond's cost recovery deduction for the year (including the $ 179 expense election) is as follows: MACRS depreciation ($1,130,000 X 0.20; Exhibit 8.3) $ 226,000 Section 179 expense (Asset 3) Total cost recovery deduction $1,246,000 As a result of its effective use of $ 179, Dimond has increased its 2019 cost recovery deduction and simplified its reporting and record keeping related to these assets. 1,020,000 Conversion to Personal Use Conversion of the expensed property to personal use at any time results in recapture income (see text Section 14-9). A property is converted to personal use if it is not used predominantly in a trade or business. 15 ETHICS & EQUITY Section 179 Limitation Joe Moran worked in the construction business throughout most of his career. In June of the current year, he sold his interest in Ajax Enterprises LLC for a profit of $300,000. Shortly thereafter, Joe started his own business, which involves the redevelopment of distressed residential real estate. In connection with his new business venture, Joe pur- chased a dump truck at a cost of $70,000. The new business struggled and showed a net operating loss for the year. Joe is considering expensing the $70,000 cost of the truck under $ 179 on this year's tax return. Evaluate Joe's plan. 8-3b Additional First-Year Depreciation (Bonus Depreciation) Congress uses the tax system to stimulate the economyespecially in challenging eco- nomic times. An example is additional first-year depreciation (also referred to as bonus depreciation). In a significant expansion of this provision, the TCJA of 2017 allows See Reg, $ 1.179-1(e) and related examples, Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-208 Copyright 2020 Cengige Leaming All Rights Reserved. May not be copied, scanned or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or Chapters Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions requireit. Topic: Week 6 Discussion Boar x C Get Homework Help With Che X C Chegg eReader GRefer to "The Big Picture" at th x + C chegg.com/reader/9780357109700/371/ ** * : Search keywords, chapter or page # Q INUW HIVIU O paucu vlny 2.2 NV IZJAVUUII, V, V, VI LIIC 2Cu3 HIJCIVILE Uunny LIIC 1a quarter of the taxable year. As a result, the mid-quarter convention does not apply, and Dimond's cost recovery deduction for the year (including the $ 179 expense election) is as follows: MACRS depreciation ($1,130,000 X 0.20; Exhibit 8.3) $ 226,000 Section 179 expense (Asset 3) Total cost recovery deduction $1,246,000 As a result of its effective use of $ 179, Dimond has increased its 2019 cost recovery deduction and simplified its reporting and record keeping related to these assets. 1,020,000 Conversion to Personal Use Conversion of the expensed property to personal use at any time results in recapture income (see text Section 14-9). A property is converted to personal use if it is not used predominantly in a trade or business. 15 ETHICS & EQUITY Section 179 Limitation Joe Moran worked in the construction business throughout most of his career. In June of the current year, he sold his interest in Ajax Enterprises LLC for a profit of $300,000. Shortly thereafter, Joe started his own business, which involves the redevelopment of distressed residential real estate. In connection with his new business venture, Joe pur- chased a dump truck at a cost of $70,000. The new business struggled and showed a net operating loss for the year. Joe is considering expensing the $70,000 cost of the truck under $ 179 on this year's tax return. Evaluate Joe's plan. 8-3b Additional First-Year Depreciation (Bonus Depreciation) Congress uses the tax system to stimulate the economyespecially in challenging eco- nomic times. An example is additional first-year depreciation (also referred to as bonus depreciation). In a significant expansion of this provision, the TCJA of 2017 allows See Reg, $ 1.179-1(e) and related examples, Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-208 Copyright 2020 Cengige Leaming All Rights Reserved. May not be copied, scanned or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or Chapters Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions requireit
