Required information [The following information applies to the questions displayed below.) While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Year 1 Assets Computers (5-year) office equipment (7-year) Furniture (7-year) Start-up costs Purchase Date October 30, 71 October 30, Y1 October 30, Y1 October 30, Y1 Basis $ 15,000 10,000 3,000 17,000 in April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $10,000, and the sale was completed on April 30. During their summer break Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation in the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15, Y2 for $15.000 and spent $3,000 getting it ready to put into service. The pinball machine cost $4,000 and was placed in service on July 1. Y2 Year 2 Assets Purchase Date Basis Swed Save & EX chapter 10 Help on June 15, Y2 for $15,000 and spent $3.000 getting it ready to put into service. Ine pinball machine cost $4,000 and was placed in service on July 1, Y2 Year 2 Assets Purchase Date Basis Van June 15, Y2 $ 18,000 Pinball machine (7-year) July 1, Y2 4,000 Customer list April 30, Y2 10,000 Assume that eSys Answers does not claim any $179 expense or bonus depreciation (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) (Round your intermediate calculations and final answers to the nearest whole dollar amount.) b. Complete eSys Answers's Form 4562 for Y1 (use the most current form available) 20-Year 3.750% Year 1 Year 2 7.219 Year 3 Year 4 6.677 6.177 Year 5 5.713 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 Year 6 5.285 Year 7 4.888 Year 8 4.522 Year 9 4.462 Year 10 Year 11 Year 12 Year 13 5.91 Year 14 Year 15 Year 16 5.90 5.91 2.95 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Year 17 Year 18 Year 19 Year 20 Year 21 4.462 4.461 2.231 Search for ::: Apps CE Vargas on C... Marc Anthony, Q'V... Albir & Sara TABLE 2a MACRS Mid-Quarter Convention: For property placed in service charing the furst quarter Depreciation Rate for Recovery Period 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5 Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Years 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in cenice during the third quarter Depreciation Rate for Recovery Period 6-Year 7-Year Year 1 15.00% 10.71 Year? 34.00 25.51 Year 3 20.40 18.22 Year 4 13.02 Years 11.30 9.30 Year 6 206 8.85 Year 7 8.86 Years TABLE 20 MACRS-id Quarter Convention Fo Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Years 7.64 TABLE 3 Redential Rental Property Mid-Month Convention Straight Line 27.5 Year Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Year 1 3.485% 3.182% 2879% 2576% 2.273% 1.970% 1.667% 1.364% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3,637 3,637 3.637 3.637 3.637 3.637 3.636 3.636 Year 11 3.636 3.636 3.636 3,636 3.636 3.636 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.632 3.637 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3,636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 22 3.637 3.632 3.637 3.637 3.632 3,637 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 25 3,636 3.636 3,636 3.636 3.636 3.636 3.637 3.637 Year 26 3.632 3,697 3.637 3.637 3,637 3.637 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 28 192 2273 2.576 2.879 3.182 3.485 3.636 3.636 Year 29 0.152 0,455 Month 9 Month 10 Month 11 Month 12 1.061% 0.758% 0.455% 0.152% 3.636 3.636 3.636 3.636 3.636 3636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3,637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.632 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 0.758 1.061 1.364 1.667 3.636 Month 1 Year 1 Year 8 Year 9 Year 10 Yerli Year 12 Year 13 Year 14 Year 16 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3:174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.720 Month 2 2.778% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.114 3.175 1.984 Lovebon Stracht le 31.5 Years (for et placed in service before May 13, 1993) Month Property Placed in Service Month 3 Month 4 Months Math 6 Month 7 Meath 8 Month 2.513% 2.249% 1.984% 1.720% 1453% 1190% 0.926% 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.1.14 3.175 3.174 3.175 3.174 3.175 5.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.195 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3175 3.174 3.175 3.124 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.114 3.175 3.174 3.175 3114 3.175 3.174 3.175 3.174 3.175 3.174 3175 3174 3.175 3.174 3.175 3174 3.175 3.114 3.195 3.174 2.249 2513 2.718 3.042 3175 3.174 3175 0132 0.392 0461 Month 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3:174 3.175 3.174 0.926 Meath 11 0.39% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3174 3.175 3.174 3375 1.190 Month 12 0.1326 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1455 3.115 3.174 Year 31 Year 3 Year33 Year 1 Year 2-39 Year 40 Real Property Manth Convention Straight Line 39 Years (forsets placed in service ou or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month Month 6 Month 7 Month & Month 9 246196 2247% 2.033% 1.819% 1.603% 1.391% 1177% 0.963% 0.749% 2.564 2.564 2564 2.564 2.564 2.564 2.564 2.564 2.564 9.107 0.321 0.535 0.749 0.963 1177 1.391 1.605 1.819 Month 10 0.535% 2564 2.033 Month II 0.321% 2564 2.247 Month 12 0.107% 2.564 2.461 GUNS 1515-0172 4562 Depreciation and Amortization (including Information on Llated Property) Ath to your text. Bo to www.ingevlor formations and the information Duis or the which is formas 2019 Dorthe The Santa Neon um Achment Ben Ne 179 ang Number 1 2 Pall Election to Expondo Certain Property Under Section 179 Notes If you have any leted property, complete Part V before you complete Part 1 1 Maximum amount (see Instructions) 2 Total cost of section 170 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract ine 3 from line 2. zero or loss, enter-O- 8 Dollar limitation for tax year. Subtract line 4 from line 1. #zero or less, enter 0-. married filing separately. See instructions A Description of property Cost busreis user lel Bached COM 4 8 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in column (c), Ines 8 and 7 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2018 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 Camryover of disallowed deduction to 2020. Add lines 9 and 10 less line 12 13 Note: Don't use Part 11 or Partill below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See Instructions 14 Special depreciation allowance for qualified property (other than listed properly placed in service during the tax year. See instructions 14 15 Property subject to section 1681(1) election 15 16 Other depreciation including ACRS) 16 Part III MACRS Depreciation Don't include listed property. See instructions Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2019 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here Section 8 - Assets Placed in Service During 2019 Tax Year Using the General Depreciation System MORE Curly covery m Merred 1993 year property b 5-year property Gyear property di 10 year property e 15-year property 1 20-year property 925-year property h Residential rental MM property 27 Nonresidential real Property V Section C. Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Classide 40 ye DELLATE LLL 200 Class SA 12 12 m. SIL 0.30-YA 90 yra MM 6/L d 40-VO MM SAL PLIV SUMMATI See Instructions 21 Listad property. Enter amount from line 28 22 Total. Add amounts from line 12, Ines 14 through 17, Iines 19 and 20 in column (g) and Ine 21. Enter here and on the appropriate lines of your retum. Partnerships and corporations-See Instructions 23 For assets shown above and placed in service during the current year, anter the portion of the basis attributable to section 263A costs For Paperwork Reduction Act Noon, separate Instructions. CAL No. 1290 21 Form 45.2018 Form 45 2016 Proa 2 Part V Usted Property include automobiles, certain other vehicles, certain aircraft, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section, and Section Cif applicable. Section A-Depreciation and Other Information Caution: See the instructions for limits for passenger automobiles) 24a Do you have evidence to support the business/investment une claimed? Yes No 24b Yes is the evidence written? Yes No Bain Typowa Dula placed Controle Bor cation Reco Muth Deco Ected on 179 inice period Curves co 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use. See instructions 25 26 Property used more than 50% in a qualified business use: U2 27 Property used 50% or less in a qualified business use -1 28 Add amounts in column thines 25 through 27. Enter here and on line 21 page 1 28 29 Add amounts in column), line 26. Enter here and on line 7 page 1 29 Section Information on Use of Vehicles Complete this section for vehicles used by a scle proprietor, or other more than 5 owner or related person you provided vehicles to your employees. First answer the questions Section to see if you meet an exception to completing this section for those vehicles th 30 Total busnesvestment miles driven during Wh W Veich the year don't include commuting mis 31 Yotal comiting miles driven during the year 32 Total ther personal noncommuting mins driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle avait for personal Yes No Yes No Yes No Yes No Yes No Yes No use during of duty hours? 35 Was the vehicle sed purly by a more worlated person Section Questions for Lmployers Who Provide Vehicles for Use ty Their Employees Answermenduestion to determinou motion to comection for mwaret more than worse related persons inst eduction weer Call or his any perted Condition 25 Specnoprololowance for quided property pod V during the tax year and used more than 50% in a qualified business use. See Instructions 28 26 Property and more than 50% guified business use: 27/Property used 50% or linguisfied business use SA BA- PRE 28 Add amounts in column ), lines 25 through 27. Enter here and on line 21, page 1 28 20 Add amounts on colunin (0. line 26. Enter here and on line 7 Page 1 29 Section B-Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other more than 5% owner, or related person you provided vehicles to your employees, finst answer the questions in Section to see if you meet an exception to completing this section for those vehicles. 1 Vehicle 1 Vehicle 2 Vehicle 3 30 Total business/investment miles driven during Whic 4 Verdes the year don't include commuting miles) 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yos No use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36. is another vehicle available for personal use? Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren't more than 5% owners or related persons. See instructions. 37 Do you maintain a written policy statement that prohibits al personal use of vehicles, including commuting by Yes No your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain nformation from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? See Instructions Note: If your answer to 37, 38, 39, 40, 41 s "Yes. don't complete Section B for the covered Vehicles Part VI Amortization Dworto 10 Data id Amortamore Amoros Co 42 Amortization of costs that begins during your 2019 tax year(see instructions 43 Amortization of costs that began before your 2019 tax year 44 Total Add amounts in column see the instructions for where to report 43 4 4562
