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Scenario $3$: Depreciation Recapture

Machinery purchased for $$160,000$

Placed in service on July $20$th$,2020$

$5-$year MACRS depreciation

Section $179$ Deduction Taken: $$20,000$

Sold in $2024$ for $$130,000$

Calculate:

The accumulated depreciation as of the sale date.

The amount of gain or loss on the sale.

How the gain is characterized for tax purposes $($ordinary income vs$.$ capital gain$).$

Scenario $4$: Listed Property Limitations

Company car purchased for $$38,000$

Placed in service on March $15$th$,2023$

Used $70\%$ for business, $30\%$ for personal use.

$5-$year MACRS depreciation

Calculate:

The maximum depreciation deduction allowed in Year $1,$ considering listed property limitations$.$

The total depreciation deductions allowed over the car's depreciable life if business use stays consistent.