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Posted on Sep 11, 2024

Table 1 MACRS Half-Year Convention 20-Year 3.750% 7.219 Year 1 Year 2 Year 3 Year 4 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year

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Table 1 MACRS Half-Year Convention 20-Year 3.750% 7.219 Year 1 Year 2 Year 3 Year 4 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 6.677 6.177 5.713 Year 5 Year 6 Year 7 5.285 4.888 4.46 6.55 5.90 4.522 Year 8 Year 9 6.56 5.91 4.462 6.55 5.90 4.461 3.28 4.462 5.91 5.90 5.91 4.461 4.462 5.90 5.91 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 4.461 4.462 4.461 2.95 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 6-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 6-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 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12 24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 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 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 6 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% Year 2.9 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 Year 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 Year 29 0.152 Month S 1.364% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 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 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 3.636 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 0.758 1.061 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5 Years (for assets placed in service before May 13, 1993) Month 1 Month 2 Month 9 Month 10 Month 4 2.249% 2.778% Month 3 2.513% 3.175 0.926% 3.042% 3.175 0.661% Month 11 0.397% 3.175 3.175 3.175 Month 12 0.132% 3.175 3.175 Year 1 Year 2-7 Year 8 Year 9 Year 10 3.175 Month 8 1.190% 3.175 3.175 3.175 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.175 3.175 3.174 TI 3.175 3.174 3.175 3.174 Year 11 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.175 Year 12 Year 13 Year 14 Year 15 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 Year 16 3.175 3.174 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 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 3.174 3.175 3.174 3.175 3.174 2.778 3.042 3.175 3.175 Year 17 Year 18 Year 19 Year 20 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Year 21 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 Year 22 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 Year 23 Year 24 3.175 3.175 3.174 3.115 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 Year 25 3.174 3.175 3.175 3.175 Year 26 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.174 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 ILLLLLLL Year 27 Year 28 Year 29 Year 30 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.174 3.174 3.175 Year 31 3.174 3.175 3.174 3.175 3.174 3.175 3.174 2.249 3.175 2.513 1.720 1.984 3.174 3.175 3.174 3.175 3.174 Year 32 Year 33 0.132 0.397 0.661 0.926 1.190 1.455 Month 10 Month 11 Month 12 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 0.535% 2.564 0.321% 2.564 2.247 0.107% 2.564 2.461 2.033 ! Required information [The following information applies to the questions displayed below.] On March 14 of year 1 Javier purchased and placed in service a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,475,500; $328,000 was allocated to the basis of the land and the remaining $1,147,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5 .) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Year Depreciation deduction 1 2 3 b. What would be the year 3 depreciation deduction if the building was sold on January 8 of year 3? Year 3 depreciation deduction d. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Year Depreciation deduction 1 2 3