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Sam the Butcher acquires the following new five-year class property in 2020. Use $1,040,000 as the maximum 179 amount: Asset Acquisition Date Cost A January
Sam the Butcher acquires the following new five-year class property in 2020. Use $1,040,000 as the maximum 179 amount:
Asset | Acquisition Date | Cost |
A | January 10 | $1,106,000 |
B | July 16 | 540,000 |
C | November 20 | 170,000 |
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Sam elects 179 for Asset A only. Sams taxable income from the butcher shop would not create a limitation for purposes of the 179 deduction. Sam elects not to take the additional first-year depreciation.
- Determine Sams depreciation deduction for each asset for 2020.
- Determine Sams total depreciation deduction for 2020.
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