Ask Question
6 July, 19:20

The only asset Bill purchased during 2017 was a new seven-year class asset.

The asset, which was listed property, was acquired on June 17 at a cost of $50,000.

The asset was used 40% for business, 30% for the production of income, and the rest of the time for personal use. Bill always elects to expense the maximum amount under § 179 whenever it is applicable.

The net income from the business before the § 179 deduction is $100,000.

Determine Bill's maximum deduction with respect to the property for 2017.

a. $1,428

b. $2,499

c. $26,749

d. $33,375

e. None of the above

+4
Answers (1)
  1. 6 July, 19:26
    0
    b. $2,499

    Explanation:

    The listed property does not pass the predominantly business usage test.

    We cannot take 179 expensing or additional first-year depreciation (if available). In addition, only straight - line cost recovery can be used.

    Maximum deduction = (50,000 *.0714 * 70%)

    Maximum deduction = 2,499
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The only asset Bill purchased during 2017 was a new seven-year class asset. The asset, which was listed property, was acquired on June 17 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers