Table 1 MACRS Half-Year Convention 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% 20-Year 3.750% Year 1 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 17.49 8.55 6.677 19.20 11.52 14.40 11.52 7.41 12.49 7.70 Year 4 Year 5 Year 6 8.93 6.93 11.52 5.76 9.22 7.37 6.177 5.713 5.285 4.888 8.92 6.23 Year 7 8.93 6.55 5.90 4.46 6.55 5.90 Year 8 Year 9 6.56 5.91 4.522 4.462 4.461 6.55 5.90 Year 10 Year 11 3.28 5.91 5.90 4.462 4.461 Year 12 Year 13 Year 14 5.91 4.462 4.461 5.90 5.91 4.462 Year 15 Year 16 2.95 4.461 4.462 Year 17 Year 18 4.461 4.462 Year 19 Year 20 4.461 Year 21 2.231 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 21 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 Llulle TABLE 2a MACRS Mid-Quarter Convention: For properly placed in service during the first quarter Depreciation Rate for Recovery Period 5-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 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 2347 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 4.26 8.87 Year 6 Year 7 Year 8 8.87 3.34 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate l'or 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 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 2020 10.100** 10,000 Year Placed in Service 2019 2018 10,100* 16.100 16.000 9,700 9,600 5.700 5,760 2 16,100 9.700 5.760 2017 3,160 5,100 3,050 1,875 TIN 4 and after *As of prese date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same limitations as in 2019 for 2020. **$8,() additional depreciation is allowed when bonus depreciation is claimed [8/68(X2)(F)]. .......... Return to ques 20 Required information {The following information applies to the questions displayed below.] Part 4 of 5 0.47 points Lina purchased new car for use in her business during 2020. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2020 and 2021 (Lina doesn't want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $94.000, and she used it 20 percent for business. Answer is complete but not entirely correct. Year 2020 Depreciation deduction 2,020 X 3,220 2021 $
