Score: 22.5%, 9 of Question Help Read the grements Fred is considering acquiring a new luxury automobile conting $60.000 that will be used 100% in his business. The salesperson at the automobile dership states that Fred will be oned to substantial tax benefits in the initial year (2010) including Click the icon to view the salesperson statements) Click the icon to view the MACRS half-year convention rates) Click the icon to view the Luxury Automobile Depreciation Limits) Requirement assuming Fred elects out of bonus depreciation are the salesperson fons relative to the tax benefits accurate? Explain PA Yes. The man is come. Since Fred is going to use the automobile 100% for business they autos do not apply to him. B. No. The salesman is incorrect. The maximum amount of depreciation (Sec 179 and regular MACRS) is limited to $10,000 in 2019 due to the luxury Sec. 179 is not edited, the total depreciation deduction of $12.000 would be greater than the maimum luxury car amount. Thus, the maximum depreciation deduction in the year is bly less thandaimed by the person. Sec 1 is not recommended for luxury automobiles Fredd notect out of bonus depreciation, the limit would be $18,000 No. The salesman is incorrect. The maximum amount of depreciation is 560.000 Sec 179 is elected Sec 179 is not elected the man depreciation is limited to $10,000 in 2019 due to the luxurystomis. The luxury time do not apply to taxpayers who elect Sec. 179. D. No. The salesman is incorrect. The maximum amount of depreciation is limited to $10,000 in 2018 da to the mids when a clects Sec. 179. Fred's maximum depreciation amount is $12,000 when Sec. 179 is not lected. The luxury auto limits do not apply to taxpayers who do not clect Sec. 179 0 Requirements a Assuming Fred elects out of bonus depreciation, are the salespersor's son motive to the tax benefits accurate? Explain b. Would your answer to Part a differ the automobile were used only 55% for business purposes? c. Would your answer to Partader Fred instead were to lease the automobile? Would your answers to Porta a ter the vehicle were a large SUV (gross whide weight rating GVWR) greater than 6,000 pounds) rather than an automobile? to select your answer and then click Check Answer arts maining mathul.com/Student/Player Homework.aspx?homeworkid=567625552&questionid=3&flushed=false&cid=60530408centerwin=yes M Gmail Youtube Maps New Tab Old Navy Shop - 244 Summer 2020 Oakton Oleksandra Nagirna & 07/20/2 mework: Chapter 10 HW : 0 of 2 pts 5 of 12 (3 completel HW Score: 22.596 0-8 (similar to) Questio is considering acquiring a new luxury automobile coating $60,000 that will be used 100% in his business. These Reference ing: Click the icon to view the salesperson's statements.) (Click the loon to view the MACRS half-year o Click the icon to view the Luxury Automobile Depreciation limits.) General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Reference Applicable Convention Half-Year Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Recovery period and Depreciation Rates Recovery Luxury Automobile Depreciation Limits Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Automobile is placed in Service Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2016 2012-2017 2010-2011 2009 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 1 $10,000 or $3,160 $2.900 Year 3 $3,060 14.81 19.20 17.49 14.40 $18,000 Year 4 7.41 11,52 12.49 11.52 7.70 6.177 Year 2 16,000 5,100 4,900 4.800 Year 5 11.52 8.93 9.22 6.93 5.713 Year 3 9.600 3.050 2.850 Year 6 5.76 8.92 7.37 6.23 5.285 Year 4 and Each 5,760 1.875 1,775 1,775 Year 7 8.93 6.55 5.90 Suceeding Year 4,888 Year & 4.46 6.55 5.90 4.522 "If the taxpayer does not let out of bonus depreciation in 2018 Year 9 6.56 5.91 AX AUTHORITY UPDATE Year 10 6.55 6.90 4.461 Year 11 the time this edition went to print the IRS had not yet released the 2010 colling imits. For this problem 3.28 5.91 4.462 assume the limits will be the same for 2019 as they were in 2018 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 Print Done 5.90 4.461 Year 15 5.91 4.462 LOG your answer and the CCOORWCA 6.677 mm 2.950 Print Done rs naning MacBook Pro Question Help Fred is considering acquiring a new luxury automobile costing $60,000 that will be used 100% in his business. The salesperson at the automobile dealership states that Fred will be entited to substantial tax benefits in the wayew (2019) ncluding: (Click the icon to view the salesperson's statements.) (Click the icon to view the MACRS half-year conversion rates.) (Click the loon to view the Luxury Automobile Depreciation limits.) Read the requirements Requirement. Assuming Fred elects out of bonus depreciation are the salesperson's assertions relative to the tax benefits accurate? Explain A. Yes. The salesman is correct. Since Fred is going to use the automobile 100% for business the luxury auto limits do not apply to him. B. No. The salesman is incorrect. The maximum amount of depreciation (Sec. 179 and regular MACRS) is limited to $10.000 in 2019 due to the luxury auto limits. If Sec. 170 is not elected the total depreciation deduction of $12,000 would be greater than the maximum luxury car amount. Thus, the maximum depreciation deduction in the initial year is substantially less than claimed by the salesperson. Sec. 170 is not recommended for ur avtomobiles. Freddid not let out of bonus depreciation, the limit would be $18,000. C. No. The salesman is incorrect. The maximum amount of depreciation is $60,000 if Sec. 179 is elected. If Sec. 170 is not elected, the maximum depreciation is led to $10,000 in 2019 due to the laury auto limits. The axury auto limits do not apply to taxpayers who lect Sec. 178. D. No. The salesman is incorrect. The maximum amount of depreciation is limited to $10,000 in 2019 due to the luxury do limits when a taxpayer lects Sec. 179. Fred's maximum depreciation amount is $12.000 when Sec 179 is not elected. The luxury autoimits do not apply to taxpayers who do not elect Sec. 179. k to select your answer and then click Check Answer Clor All Check Answer remaining 5 of 12 (3 complete) mobile costing $60,000 that will be used 100% in his business. The salesperson at the automobile dealership states that Fred will be entitled to substantial tax atements.) ile Depreciation (Click the icon to view the MACRS half-year convention rates.) Reference anus depreciatio d is going to use imum amount of ury car amount. imit would be $ 2009 $2,960 jot elected, the total depre 179 is not recommende imum amount of 179. Luxury Automobile Depreciation Limits Year Automobile is placed in Service 2018 2012-2017 2010-2011 Year 1 $10,000 or $3,160 $3,060 $18,000" Year 2 16,000 5,100 4,900 Year 3 9,600 3,050 2,950 Year 4 and Each 5,760 1,875 1,775 Suceeding Year "If the taxpayer does not elect out of bonus depreciation in 2018. po in 2019 due to the luxu mum amount of bly to taxpayers 4,800 2,850 1,775 um depreciation amount is TAX AUTHORITY UPDATE At the time this edition went to print, the IRS had not yet released the 2019 ceiling limits. For this problem we assume the limits will be the same for 2019 as they were in 2018. Print Done eck Answer Clear All HW Score: 22.5%, 9 of 40 pts 0 Reference Help 2 10-8 (similar to) ed is considering acquiring a new luxury automobile costing 500,000 that will be used 100% in his business. Click the icon to view the salesperson's statements) Click the icon to view the MACRS hat Click the icon to view the Luxury Automobile Depreciation init) ad the required More Info quirements. As 300 A. Yes. These 3. No. The would be nollacou C. No. The sake do not apply 3. No The lected. The I Sec. 179 is lected A deduction of $60,000 of the action cost under Sec. 179. Sed 179 is not elected: A $12.000 (500,000 x 0.2) depreciation deduction, 00 Freddid General Depreciation System MACRS Personal Property Praced in Service Afer 1201/86 Applicable Convention Hall Year Applicatie Depreciation Method 200 or 150 Percent Declining Balance Switching to She Line Recovery period and Depreciation Rates Recovery Year 5-Year 10-Year 15-Year 20-Year Year 1 33.33 20.00 14.29 10.00 3.750 Year 2 32.00 2449 18.00 9.50 Year 3 7219 14.81 19.20 17.49 14.40 8.55 Year 4 6.677 11.52 12.49 11.52 7.70 Year 5 6.177 11.52 8.93 9.22 6.90 5.713 Yeart 5.75 8.32 737 5.285 Year 7 8.93 6.55 5.90 4.88 Year 446 590 Year 4522 5.91 4452 Year 10 6.55 5.80 4401 Year 11 3.28 6.91 4.462 Year 12 5.90 Year 13 4461 5.91 4.12 Year 14 5.90 4.461 Year 15 5.91 4462 Print Done is not to select your answer and then chok Check Answer Print Done arts maining Clear All Score: 22.5%, 9 of Question Help Read the grements Fred is considering acquiring a new luxury automobile conting $60.000 that will be used 100% in his business. The salesperson at the automobile dership states that Fred will be oned to substantial tax benefits in the initial year (2010) including Click the icon to view the salesperson statements) Click the icon to view the MACRS half-year convention rates) Click the icon to view the Luxury Automobile Depreciation Limits) Requirement assuming Fred elects out of bonus depreciation are the salesperson fons relative to the tax benefits accurate? Explain PA Yes. The man is come. Since Fred is going to use the automobile 100% for business they autos do not apply to him. B. No. The salesman is incorrect. The maximum amount of depreciation (Sec 179 and regular MACRS) is limited to $10,000 in 2019 due to the luxury Sec. 179 is not edited, the total depreciation deduction of $12.000 would be greater than the maimum luxury car amount. Thus, the maximum depreciation deduction in the year is bly less thandaimed by the person. Sec 1 is not recommended for luxury automobiles Fredd notect out of bonus depreciation, the limit would be $18,000 No. The salesman is incorrect. The maximum amount of depreciation is 560.000 Sec 179 is elected Sec 179 is not elected the man depreciation is limited to $10,000 in 2019 due to the luxurystomis. The luxury time do not apply to taxpayers who elect Sec. 179. D. No. The salesman is incorrect. The maximum amount of depreciation is limited to $10,000 in 2018 da to the mids when a clects Sec. 179. Fred's maximum depreciation amount is $12,000 when Sec. 179 is not lected. The luxury auto limits do not apply to taxpayers who do not clect Sec. 179 0 Requirements a Assuming Fred elects out of bonus depreciation, are the salespersor's son motive to the tax benefits accurate? Explain b. Would your answer to Part a differ the automobile were used only 55% for business purposes? c. Would your answer to Partader Fred instead were to lease the automobile? Would your answers to Porta a ter the vehicle were a large SUV (gross whide weight rating GVWR) greater than 6,000 pounds) rather than an automobile? to select your answer and then click Check Answer arts maining mathul.com/Student/Player Homework.aspx?homeworkid=567625552&questionid=3&flushed=false&cid=60530408centerwin=yes M Gmail Youtube Maps New Tab Old Navy Shop - 244 Summer 2020 Oakton Oleksandra Nagirna & 07/20/2 mework: Chapter 10 HW : 0 of 2 pts 5 of 12 (3 completel HW Score: 22.596 0-8 (similar to) Questio is considering acquiring a new luxury automobile coating $60,000 that will be used 100% in his business. These Reference ing: Click the icon to view the salesperson's statements.) (Click the loon to view the MACRS half-year o Click the icon to view the Luxury Automobile Depreciation limits.) General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Reference Applicable Convention Half-Year Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Recovery period and Depreciation Rates Recovery Luxury Automobile Depreciation Limits Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Automobile is placed in Service Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2016 2012-2017 2010-2011 2009 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 1 $10,000 or $3,160 $2.900 Year 3 $3,060 14.81 19.20 17.49 14.40 $18,000 Year 4 7.41 11,52 12.49 11.52 7.70 6.177 Year 2 16,000 5,100 4,900 4.800 Year 5 11.52 8.93 9.22 6.93 5.713 Year 3 9.600 3.050 2.850 Year 6 5.76 8.92 7.37 6.23 5.285 Year 4 and Each 5,760 1.875 1,775 1,775 Year 7 8.93 6.55 5.90 Suceeding Year 4,888 Year & 4.46 6.55 5.90 4.522 "If the taxpayer does not let out of bonus depreciation in 2018 Year 9 6.56 5.91 AX AUTHORITY UPDATE Year 10 6.55 6.90 4.461 Year 11 the time this edition went to print the IRS had not yet released the 2010 colling imits. For this problem 3.28 5.91 4.462 assume the limits will be the same for 2019 as they were in 2018 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 Print Done 5.90 4.461 Year 15 5.91 4.462 LOG your answer and the CCOORWCA 6.677 mm 2.950 Print Done rs naning MacBook Pro Question Help Fred is considering acquiring a new luxury automobile costing $60,000 that will be used 100% in his business. The salesperson at the automobile dealership states that Fred will be entited to substantial tax benefits in the wayew (2019) ncluding: (Click the icon to view the salesperson's statements.) (Click the icon to view the MACRS half-year conversion rates.) (Click the loon to view the Luxury Automobile Depreciation limits.) Read the requirements Requirement. Assuming Fred elects out of bonus depreciation are the salesperson's assertions relative to the tax benefits accurate? Explain A. Yes. The salesman is correct. Since Fred is going to use the automobile 100% for business the luxury auto limits do not apply to him. B. No. The salesman is incorrect. The maximum amount of depreciation (Sec. 179 and regular MACRS) is limited to $10.000 in 2019 due to the luxury auto limits. If Sec. 170 is not elected the total depreciation deduction of $12,000 would be greater than the maximum luxury car amount. Thus, the maximum depreciation deduction in the initial year is substantially less than claimed by the salesperson. Sec. 170 is not recommended for ur avtomobiles. Freddid not let out of bonus depreciation, the limit would be $18,000. C. No. The salesman is incorrect. The maximum amount of depreciation is $60,000 if Sec. 179 is elected. If Sec. 170 is not elected, the maximum depreciation is led to $10,000 in 2019 due to the laury auto limits. The axury auto limits do not apply to taxpayers who lect Sec. 178. D. No. The salesman is incorrect. The maximum amount of depreciation is limited to $10,000 in 2019 due to the luxury do limits when a taxpayer lects Sec. 179. Fred's maximum depreciation amount is $12.000 when Sec 179 is not elected. The luxury autoimits do not apply to taxpayers who do not elect Sec. 179. k to select your answer and then click Check Answer Clor All Check Answer remaining 5 of 12 (3 complete) mobile costing $60,000 that will be used 100% in his business. The salesperson at the automobile dealership states that Fred will be entitled to substantial tax atements.) ile Depreciation (Click the icon to view the MACRS half-year convention rates.) Reference anus depreciatio d is going to use imum amount of ury car amount. imit would be $ 2009 $2,960 jot elected, the total depre 179 is not recommende imum amount of 179. Luxury Automobile Depreciation Limits Year Automobile is placed in Service 2018 2012-2017 2010-2011 Year 1 $10,000 or $3,160 $3,060 $18,000" Year 2 16,000 5,100 4,900 Year 3 9,600 3,050 2,950 Year 4 and Each 5,760 1,875 1,775 Suceeding Year "If the taxpayer does not elect out of bonus depreciation in 2018. po in 2019 due to the luxu mum amount of bly to taxpayers 4,800 2,850 1,775 um depreciation amount is TAX AUTHORITY UPDATE At the time this edition went to print, the IRS had not yet released the 2019 ceiling limits. For this problem we assume the limits will be the same for 2019 as they were in 2018. Print Done eck Answer Clear All HW Score: 22.5%, 9 of 40 pts 0 Reference Help 2 10-8 (similar to) ed is considering acquiring a new luxury automobile costing 500,000 that will be used 100% in his business. Click the icon to view the salesperson's statements) Click the icon to view the MACRS hat Click the icon to view the Luxury Automobile Depreciation init) ad the required More Info quirements. As 300 A. Yes. These 3. No. The would be nollacou C. No. The sake do not apply 3. No The lected. The I Sec. 179 is lected A deduction of $60,000 of the action cost under Sec. 179. Sed 179 is not elected: A $12.000 (500,000 x 0.2) depreciation deduction, 00 Freddid General Depreciation System MACRS Personal Property Praced in Service Afer 1201/86 Applicable Convention Hall Year Applicatie Depreciation Method 200 or 150 Percent Declining Balance Switching to She Line Recovery period and Depreciation Rates Recovery Year 5-Year 10-Year 15-Year 20-Year Year 1 33.33 20.00 14.29 10.00 3.750 Year 2 32.00 2449 18.00 9.50 Year 3 7219 14.81 19.20 17.49 14.40 8.55 Year 4 6.677 11.52 12.49 11.52 7.70 Year 5 6.177 11.52 8.93 9.22 6.90 5.713 Yeart 5.75 8.32 737 5.285 Year 7 8.93 6.55 5.90 4.88 Year 446 590 Year 4522 5.91 4452 Year 10 6.55 5.80 4401 Year 11 3.28 6.91 4.462 Year 12 5.90 Year 13 4461 5.91 4.12 Year 14 5.90 4.461 Year 15 5.91 4462 Print Done is not to select your answer and then chok Check Answer Print Done arts maining Clear All