28. Taxpayers choosing the election to expense: (Points : 1 ) May depreciate the
ID: 2449767 • Letter: 2
Question
28. Taxpayers choosing the election to expense: (Points : 1)
May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense.
Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit.
May not carry over any amounts elected which are not allowed because of taxable income limitations
May expense a $125,000 automobile so long as it is used 100% for business
29. What is the maximum depreciation expense deduction for Year 2 (2015) for a passenger automobile, used 100% for qualified business use, placed in service on June 15, 2014 & costing $14,000 (the election to expense is not made & no bonus depreciation was taken)? (Points : 1) $2,800$3,160
$4,480
$5,100
None of the other provided choices
Explanation / Answer
ans 28 Option B Can have the maximum that can be expensed under the election which is reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit. The taxpayer can choose to expense under the election and the amt is reduced by$.5 of every dollar by which the cost exceeds the specified limit. Ans 29 $5100 As per IRS the depreciation deduction for second year is $5100 for the automobile placed in service in June 2014 ans 30 Some amount less than the specific amounts provided ans 31 If he does not elect to take bonus depreiation or 170 expenses than the maximum depreciation that is allowed in 2014 is $3160 Option B $3160 is the answer
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