Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he
Question:
Phil owns a ranch business and uses four-wheelers to do much of his work.
Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the fiveyear MACRS schedule and the four-wheeler was the only asset Phil purchased this year.
a) Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation).
b) Calculate the allowable depreciation for year 2 if total miles were 930 and personal use miles were 400 (ignore the §179 expense and bonus depreciation).
Step by Step Answer:
McGraw-Hill's Taxation Of Individuals
ISBN: 9781259729027
2017 Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver