a) What is Sidd\'s Taxable Income BEFORE Depreciation? A. -$3525 B. -$6,125 C. $

Question

a) What is Sidd's Taxable Income BEFORE Depreciation?

A. -$3525

B. -$6,125

C. $36,000

D. -$7975

b) Calculate Sidd's available depreciation for the building and any appliances/equipment he owns. No bonus depreciation or Sec 179.

Building Year 1: $14,545 ; Equipment Year 1: $1000

Building Year 1: $13,940; Equipment Year 1: $500

Building Year 1: $13,940; Equipment Year 1: $1000

D.

D.Building Year 1: $17,425; Equipment Year 1: $1000

How would the answer in B change if this were a commercial rental property instead (non-residential)?

(Ignore the equipment depreciation for this question - just provide the new depreciation for the building only)

A. Total Depreciation now = $10,844

B. Total Depreciation now = $9,844

C. Total Depreciation now = $10,256

D. Total Depreciation now = $11256

Building Year 1: $14,545 ; Equipment Year 1: $1000

Building Year 1: $13,940; Equipment Year 1: $500

Building Year 1: $13,940; Equipment Year 1: $1000

D.

D.Building Year 1: $17,425; Equipment Year 1: $1000

How would the answer in B change if this were a commercial rental property instead (non-residential)?

(Ignore the equipment depreciation for this question - just provide the new depreciation for the building only)

A. Total Depreciation now = $10,844

B. Total Depreciation now = $9,844

C. Total Depreciation now = $10,256

D. Total Depreciation now = $11256

Explanation / Answer

Taxable income of sidds is 36000-2500(Advance)=33500+4500=38000

Less- Expense that is 49025

Net income/loss= -15525

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