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The home was acquired for $83,000 in 2005. On May 12, 2021, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,400.

The home was acquired for $83,000 in 2005. On May 12, 2021, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,400. They wish to maximize the cost recovery on the new fixtures but make no elections. how do I calculate the Special depreciation allowance for a qualified property?

Rental income$16,100
Insurance800
Interest expense5,750
Property taxes1,200
Miscellaneous expenses500

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