Tax Drill - Additional First-year Depreciation Diana acquires and places in service a 5-year class asset, costing $65,000, on December 19, 2020. Diana does not elect immediate expensing under $ 179. She elects additional first- year depreciation. Click here to access the depreciation table to use for this problem. Diana's total cost recovery deduction for the asset is $ for 2020. 8-7c Cost Recovery Tables Summary of Tables Exhibit 8.3 Regular MACRS table for personalty. Depreciation methods: 200 or 150 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7, 10, 15, 20 years. Convention: half-year. Exhibit 8.4 Regular MACRS table for personalty. Depreciation method: 200 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7 years. Convention: mid-quarter. Exhibit 8.5 MACRS optional straight-line table for personalty. Depreciation method: straight-line. Recovery periods: 3, 5, 7, 10, 15, 20 years. Convention: half-year. Exhibit 8.6 Alternative minimum tax declining-balance table for personalty. Depreciation method: 150 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7, 9.5, 10, 12 years. Convention: half-year. Exhibit 8.7 Alternative depreciation system straight-line table for personalty. Depreciation method: straight-line. Recovery periods: 5, 10, 12 years. Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year (200% DB) (200% DB) (200% DB) (200% DB) (200% DB) (150% DB) ((150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90" 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462* 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 *Switchover to straight-line depreciation. Exhibit 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table* ) 3-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 58.33 41.67 25.00 8.33 2. 27.78 38.89 50.00 61.11 5-Year First Quarter Second Quarter Recovery Year Third Quarter Fourth Quarter 1 35.00 25.00 15.00 5.00 2 26.00 30.00 34.00 38.00 7-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 25.00 17.85 10.71 3.57 2 21.43 23.47 25.51 27.55 Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention For Property Placed in Service after December 31, 1986 Other Recovery Years Last Recovery Year MACRS Class Years % % First Recovery Year Year % 3-year 16.67 2-3 33.33 4 16.67 10.00 2-5 20.00 6 10.00 5-year 7-year 7.14 2-7 14.29 8 7.14 10-year 5.00 2-10 10.00 11 5.00 3.33 2-15 6.67 16 3.33 15-year 20-year 2.50 2-20 5.00 21 2.50 Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS). 150% Exhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table") Recovery 3-Year 5-Year 7-Year 9.5-Year 10-Year 12-Year Year 150% 150% 150% 150% 150% 1 25.00 15.00 10.71 7.89 7.50 6.25 2 37.50 25.50 19.13 14.54 13.88 11.72 3 25.00 17.85 15.03 12.25 11.79 10.25 4 12.50 12.25 10.31 10.02 8.97 5 12.25 9.17" 8.74" 7.85 6 8.33 12.25 9.17 8.74 7.33** 7 12.25 9.17 8.74 7.33 8 6.13 9.17 8.74 7.33 9 9.17 8.74 7.33 10 9.16 8.74 7.33 11 437 7.32 12 7.33 13 3.66 16.66 * 16.66 * The figures in this table are taken from the official table that appears in Rev.Proc. 87-57, 1987-2 C.B. 687. Because of its length, the complete table is not presented. **Switchover to straight-line depreciation. Exhibit 8.7 ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) * Recovery Year 5-Year Class 10-Year Class 12-Year Class 1 10.00 5.00 4.17 2 20.00 10.00 8.33 3 20.00 10.00 8.33 4 10.00 8.33 5 20.00 20.00 10.00 10.00 8.33 6 10.00 8.33 7 10.00 8.34 8 10.00 8.33 9 10.00 8.34 10 10.00 8.33 11 5.00 8.34 12 8.33 13 4.17 Exhibit 8.8 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* (Percentage Rates) For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property + Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service): Year(s) 1 2 3 5 9 10 12 1 3.485 3.1822.879 2.576 2.273 1.970 1.667 1.364 1,061 0.758 0455 0.152 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3,636 3.636 3.636 3.636 19-27 3.637 3.637 3.637 3637 3.637 3.637 3.637 3.637 3.637 3.637 3637 3.637 28 1.970 2.273 2.576 2879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1,061 1.364 1.667 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.S-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service): Year(s) 1 2 5 6 9 10 11 12 1 3.042 2.778 2.513 2.249 1.984 1.720 1455 1.190 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 20-31 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 32 1.720 1.984 2.249 2.513 2.778 3.042 3.175 3.175 3.175 3.175 3.175 3.175 33 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service): Yearts) 3 5 7 10 12 1 2.461 2.247 2.033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0321 0.107 2-39 2564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2461 *The official tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances, this will produce a difference of .001 for the last digit when compared with the official tables Exhibit 8.9 ADS Straight-Line for Real Property Assuming Mid-Month Convention (Percentage Rates) For Property Placed in Service after December 31, 2017; 30-Year Residential Rental Property Recovery Month Placed in Service Year 5 6 1 3.194 3.333 0.139 2 2.917 3.333 0.417 1 2-30 31 3 2.639 3.333 0.694 2083 1.806 2.361 3.333 0.972 7 1.528 3.333 1.806 1.250 3.333 2.083 0.972 3.333 2.361 10 0.694 3.333 2.639 11 0.417 3.333 2917 12 0.139 3.333 3.194 1.250 1.528 11 For Property Placed in Service after December 31, 1986; 40-Year Nonresidential Real Property Recovery Month Placed in Service Year 1 2 5 6 7 9 1 2.396 2.188 1.979 1.771 1.563 1.354 1.146 0.938 0.729 2-40 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 41 0.104 0.312 0.521 0.729 0.937 1.146 1.354 1.562 1.771 10 0.521 2.500 1.979 12 0.104 2.500 2.396 0313 2.500 2.187 2.500 *Also used for residential rental property placed in service before 2018