Boxer LLC has acquired various types of assets recently used 100% in its trade o
ID: 2408503 • Letter: B
Question
Boxer LLC has acquired various types of assets recently used 100% in its trade or business. Below is a list of assets acquired during 2016 and 2017:
Boxer did not elect §179 expense and elected out of bonus depreciation in 2016, but would like to elect §179 expense for 2017 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2017, including Sec. 179 expense (ignore bonus depreciation for 2017).
2017 Depreciation, including Sec. 179 expense
Machinery:
Apartment building:
Furniture:
Computer equipment:
Automobile:
Office building:
Asset Cost Basis Date Placed in Service Machinery 50,000 September 1, 2016 Apartment building 500,000 June 1, 2016 Furniture 510,000 May 1, 2017 Computer equipment 510,000 May 10, 2017 Automobile 15,000 March 16, 2017 Office building 600,000 June 24, 2017Boxer did not elect §179 expense and elected out of bonus depreciation in 2016, but would like to elect §179 expense for 2017 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2017, including Sec. 179 expense (ignore bonus depreciation for 2017).
2017 Depreciation, including Sec. 179 expense
Machinery:
Apartment building:
Furniture:
Computer equipment:
Automobile:
Office building:
Explanation / Answer
Asset
Depreciable life (years)
Depreciation for year 2017 (in $)
Sec. 179
Machinery
7
7143
NA, time to elect expires
Apartment Building
27.5
18182
NA, time to elect expires
Furniture
7
43515*
NA, not qualified property
Automobile
5
-
15000
Computer Equipment
7
-
510000
Office Building
20
15617**
NA, not qualifying property
84,457
5,25,000
*charged proportionately for 218 days of 2017 year
** charged proportionately for 190 days of 2017 year
Asset
Depreciable life (years)
Depreciation for year 2017 (in $)
Sec. 179
Machinery
7
7143
NA, time to elect expires
Apartment Building
27.5
18182
NA, time to elect expires
Furniture
7
43515*
NA, not qualified property
Automobile
5
-
15000
Computer Equipment
7
-
510000
Office Building
20
15617**
NA, not qualifying property
84,457
5,25,000
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