On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).

assume Kinsey elects any available additional first-year depreciation. the max depreciation allowed for 2019 and 2020 are?

Question

Ward

Business

26 January, 01:27

On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).

assume Kinsey elects any available additional first-year depreciation. the max depreciation allowed for 2019 and 2020 are?

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Akira Meyers · Answer 1

60,000

Explanation:

The section 179 for depreciaiton considers a requirement that the assets should be used more than 50% for business purposes during the tax year. Also ther eis a cap at $1,000,000 to depreciate

and 2,000,000 for purchases

Kinsey meet the percentage of business use and she doesn't exceeds the caps therefore it can depreciate the entire 60,000 of the car in the first year.