The only asset Doreen purchased during 2013 was a used seven-year class asset. T

Question

The only asset Doreen purchased during 2013 was a used seven-year class asset. The asset, which was listed property, was acquired on June 17 at a cost of $100,000. The asset was used 30% for business, 40% for the production of income, and the rest of the time for personal use. Doreen 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 Doreen's maximum deduction with respect to the property for 2013.

Explanation / Answer

The Listed property does not Pass the predominantly business usage test. There for section 179 expensing cannot be taken. In addition, only Stright Line Cost recovery can be used.

Maximum deduction =$100000*.0714*70%=$4998

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