What is the 2020 cost recovery deduction for Philosophical Consulting, Inc?

 

John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business: Asset Cost Office Furniture Date of Purchase 5/1/2019 9/15/2020 $100,000 $400,000 Computer System In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he always elected to recover 50% of the cost of the asset through the section 179 deduction. However, starting in 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations.