40. LO.7 Olga is the proprietor of a small business. In 2021, the businesss income, before consideration
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40. LO.7 Olga is the proprietor of a small business. In 2021, 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 2021, except for the cost recovery with respect to the new 7-year assets, is $95,000. Determine Olga’s total cost recovery for 2021 with respect to the 7-year class assets and the amount of any § 179 carryforward.
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Related Book For
Essentials Of Taxation Individuals And Business Entities
ISBN: 233160
1st Edition
Authors: Nellen/Young/Raabe/Maloney
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