Olga is the proprietor of a small business. In 2022, the businesss income, before consideration of any

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Olga is the proprietor of a small business. In 2022, the business’s income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga’s cost recovery deduction for 2022, except for the cost recovery with respect to the new 7-year assets, is $95,000. Determine Olga’s total cost recovery for 2022 with respect to the 7-year class assets and the amount of any § 179 carryforward.

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South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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