1.Marty purchased a new 5 year class asset on March of this year. The asset was

Question

1.Marty purchased a new 5 year class asset on March of this year. The asset was listed property (not an auto). It was used for business 60% of the time and personal use for the rest. The asset cost $120,000. Marty made the Sec 179 election. The income before the Sec 179 election was $200,000. What were the total deductions with respect to the asset for this year?

2.David purchased a factory building on November 15, 1999, for $5,000,000. He sells the factory building on February 2, 2012. Determine the cost recovery deduction for the year of the sale.

Explanation / Answer

David purchased a factory building on November 15, 1999, for $5,000,000. He sells the factory building on February 2, 2012. Determine the cost recovery deduction for the year of the sale.
Non residendial property MACRS class =2 39 years = 2.564%
$500,000 x 2.564% x 1.5/12 = $16,025

Marty purchased a new 5 year class asset on March of this year. The asset was listed property (not an auto). It was used for business 60% of the time and personal use for the rest. The asset cost $120,000. Marty made the Sec 179 election. The income before the Sec 179 election was $200,000. What were the total deductions with respect to the asset for this year?
Claim Deduction = 60% x $120,000 = $72,000
maximum $25,000 is allowed for deduction this year.

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