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 3-Assets Placed in Service During 2019 Tax Year Using the General Depreciation System (b) Month and (a) Classification of (c) Basis for depreciation (d) year placed in (business/investment use only Recovery property (e) Convention (1) Method service see Instructions) period 19a 3-year property b 5-year property (9) Depreciation Ceduction c7-year property 7 yrs. d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental S/L 25 yrs 27.5 yrs. 27.5 yrs. MM S/L MM S/L property I Nonresidential real 39 yrs. MM S/L property MM S/L Section C-Assets placed in Service During 2019 Tax Year Using the Alternative Depreciation System S/L 20a Class life S/L b 12-year 12 yrs 12 yrs. 30 yrs. 40 yrs. Service Buring 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year S/L C 30-year MM S/L d 40-year MM S/L Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28. 22 Total. Add amounts from line 12, Ines 14 through 17. lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs 23 For Paperwork Reduction Act Notice, see separate instructions Cat. No. 12906N 21 22 Form 4562 (2019) On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single-member LLC (Sanchez Landscaping LLC). During 2019, his business generated net income of $945,780 before any 179 Immediate expense election. Rather than using bonus depreciation, Javier would like to us 5 179 to expense $200,000 of this asset and then use regular MACRS to recover the remaining cost. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deduction (including first year additional depreciation) that Javier Sanchez can clair with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019 251,444 Total cost recovery deduction in 2020: $ 88,164 b. Complete Javier's Form 4562 (page 1) for 2019 Note: For 2019, the maximum 5 179 is $1,020,000 and the threshold amount is $2,550,000. 18 an amount is zero, enter "o". Enter amounts as positive numbers OMB No. 1545-0172 Form 4562 Depreciation and Amortization (Including Information on Listed Property) Department of the Treasury Attach to your tax return. Internal Revenue Service (99) Go to www.lrs.gov/Form4562 for instructions and the latest Information. Name(s) shown on return Business or activity to which this form relates Javier Sanchez Sanchez Landscaping, LLC Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part before you complete Part 1 Maximum amount (see instructions) 2019 Attachment Sequence No. 179 Identifying number 123-45-6789 Part 1 1 1,000,000 2 Total cost of section 179 property placed in service (se instructions) 2 560,000 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 3-Assets Placed in Service During 2019 Tax Year Using the General Depreciation System (b) Month and (a) Classification of (c) Basis for depreciation (d) year placed in (business/investment use only Recovery property (e) Convention (1) Method service see Instructions) period 19a 3-year property b 5-year property (9) Depreciation Ceduction c7-year property 7 yrs. d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental S/L 25 yrs 27.5 yrs. 27.5 yrs. MM S/L MM S/L property I Nonresidential real 39 yrs. MM S/L property MM S/L Section C-Assets placed in Service During 2019 Tax Year Using the Alternative Depreciation System S/L 20a Class life S/L b 12-year 12 yrs 12 yrs. 30 yrs. 40 yrs. Service Buring 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year S/L C 30-year MM S/L d 40-year MM S/L Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28. 22 Total. Add amounts from line 12, Ines 14 through 17. lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs 23 For Paperwork Reduction Act Notice, see separate instructions Cat. No. 12906N 21 22 Form 4562 (2019) On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single-member LLC (Sanchez Landscaping LLC). During 2019, his business generated net income of $945,780 before any 179 Immediate expense election. Rather than using bonus depreciation, Javier would like to us 5 179 to expense $200,000 of this asset and then use regular MACRS to recover the remaining cost. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deduction (including first year additional depreciation) that Javier Sanchez can clair with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019 251,444 Total cost recovery deduction in 2020: $ 88,164 b. Complete Javier's Form 4562 (page 1) for 2019 Note: For 2019, the maximum 5 179 is $1,020,000 and the threshold amount is $2,550,000. 18 an amount is zero, enter "o". Enter amounts as positive numbers OMB No. 1545-0172 Form 4562 Depreciation and Amortization (Including Information on Listed Property) Department of the Treasury Attach to your tax return. Internal Revenue Service (99) Go to www.lrs.gov/Form4562 for instructions and the latest Information. Name(s) shown on return Business or activity to which this form relates Javier Sanchez Sanchez Landscaping, LLC Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part before you complete Part 1 Maximum amount (see instructions) 2019 Attachment Sequence No. 179 Identifying number 123-45-6789 Part 1 1 1,000,000 2 Total cost of section 179 property placed in service (se instructions) 2 560,000