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On May 28 2016Mary purchased and placed in service a new $20000 car The car was used 60 for business 20 for production of income and 20 for personal use in 2016 In 2017 the usage changed

On May 28 2016Mary purchased and placed in service a new $20000 car The car was used 60 for business 20 for production of income and 20 for personal use in 2016 In 2017 the usage changed

On May 28, 2016, Mary purchased and placed in service a new $20,000 car. The car was used 60% for business, 20% for production of income, and 20% for personal use in 2016. In 2017, the usage changed to 40% for business, 30% for production of income, and 30% for personal use. Mary did not elect immediate expensing under § 179. She did not claim any available additional first-year depreciation.

Compute Mary's cost recovery deduction for 2016 and 2017 and any cost recovery recapture in 2017.

If required, round your answers to the nearest dollar.

Click here to access Exhibit 5.4 and Exhibit 5.6 of the textbook. Click here to access the limits for certain automobiles.

a. The cost recovery deduction taken in 2016 was $2528.

b. The cost recovery deduction for 2017 is?

c. The cost recovery recapture in 2017 is?

 
mahesh 24-Mar-2020

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