Homework Answers
| Property including land is not eligible for deduction under section 179. | ||||||
| Hence correct Option : d. No 179 deduction is allowed. | ||||||
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Land was purchased for $150,000 and placed in service during the current year. Taxable income before...
Office equipment in the amount of $15,000 was purchased and placed in service during the current...
Office equipment in the amount of $15,000 was purchased and placed in service during the current year. Taxable income before the 179 deduction was $10,000. Indicate the amount of a deduction under the Section 179 election a $15,000 b. No 179 election is allowed. c. $10,000 d. $1,500
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable...
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable income before the 179 deduction was $400,000, Indicate the amount of deduction under the Section 179 election, $570,000 a b. No 179 election is allowed c. $1,020,000 $450,000 d. $2,550,000
Assume that the Section 179 deduction limit is $1,000,000 and that businesses exceeding a total of...
Assume that the Section 179
deduction limit is $1,000,000 and that businesses exceeding a total
of $2,500,000 in purchases of qualifying personal property will
have the Section 179 deduction phase-out dollar-for-dollar. Also
assume that the taxpayer has elected out of any bonus depreciation.
Please treat each item separately.
1. Equipment in the amount of $300,000 was purchased and placed in service during the current year. Taxable income before the 179 deduction was $900,000. No other personal or real property was...
Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019....
Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019. Assume this was the only asset purchased in 2019. Kaytlan elected to take the maximum Section 179 expense deduction allowed but elected NOT to take additional first-year (bonus) depreciation. Kaytlan’s taxable income for 2019 before the cost recovery on this asset was $600,000. Be sure to show all of your calculations for each numbered item!! You must complete the assignment on this worksheet! 1....
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life)...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life) for his business. In August of 2019, he purchased and placed in service $40,000 of trucks (5-year class life) for his business. In November of 2019, he purchased and placed in service $90,000 of furniture (7-year class life) for his business. These are the only assets placed in service during the year. His taxable income (before the 179 deduction) for 2019 is $50,000. Jack...
Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions...
Woolard Supplies (a sole proprietorship) has taxable income in
2019 of $240,000 before any depreciation deductions (§179, bonus,
or MACRS) and placed some office furniture into service during the
year. The furniture had been used previously by Liz Woolard (the
owner of the business) before it was placed in service by the
business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table
5.) (Do not round intermediate calculations. Round your
answers to the nearest whole dollar amount.)...
A client placed $4,000,000 of five-year equipment into service in February 2018. Because taxable income is...
A client placed $4,000,000 of five-year equipment into service in February 2018. Because taxable income is more than $7,000,000, he would like to maximize this year's depreciation deduction. The largest deduction allowed is A) $2,000,000. B) $2,500,000. C) $4,000,000. D) $7,000,000.
On May 31, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing...
On May 31, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing $698,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Compute the maximum deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2017 and 2018. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for...
32. Bevis Bag Co. purchased a tract of land on August 31 of the current year,...
32. Bevis Bag Co. purchased a tract of land on August 31 of the current year, paying $225,000. Prior to the sale, the seller paid property taxes of $18,000 on the property. The taxes covered the calendar year period January 1 through December 31. a. Will Bevis be allowed to deduct any portion of the property taxes paid by the seller prior to the sale? If so, how much? b. What will be Bevis' tax basis in the land? Personal...
38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is...
38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is the only asset placed in service in 2018. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $200,000 b. $210,000 c. $1,000,000 d. $1,010,000 e. $1,050,000 ANSWER: d Please explain
Office equipment in the amount of $15,000 was purchased and placed in service during the current year. Taxable income before the 179 deduction was $10,000. Indicate the amount of a deduction under the Section 179 election a $15,000 b. No 179 election is allowed. c. $10,000 d. $1,500
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable income before the 179 deduction was $400,000, Indicate the amount of deduction under the Section 179 election, $570,000 a b. No 179 election is allowed c. $1,020,000 $450,000 d. $2,550,000
Assume that the Section 179
deduction limit is $1,000,000 and that businesses exceeding a total
of $2,500,000 in purchases of qualifying personal property will
have the Section 179 deduction phase-out dollar-for-dollar. Also
assume that the taxpayer has elected out of any bonus depreciation.
Please treat each item separately.
1. Equipment in the amount of $300,000 was purchased and placed in service during the current year. Taxable income before the 179 deduction was $900,000. No other personal or real property was...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life) for his business. In August of 2019, he purchased and placed in service $40,000 of trucks (5-year class life) for his business. In November of 2019, he purchased and placed in service $90,000 of furniture (7-year class life) for his business. These are the only assets placed in service during the year. His taxable income (before the 179 deduction) for 2019 is $50,000. Jack...
Woolard Supplies (a sole proprietorship) has taxable income in
2019 of $240,000 before any depreciation deductions (§179, bonus,
or MACRS) and placed some office furniture into service during the
year. The furniture had been used previously by Liz Woolard (the
owner of the business) before it was placed in service by the
business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table
5.) (Do not round intermediate calculations. Round your
answers to the nearest whole dollar amount.)...
32. Bevis Bag Co. purchased a tract of land on August 31 of the current year, paying $225,000. Prior to the sale, the seller paid property taxes of $18,000 on the property. The taxes covered the calendar year period January 1 through December 31. a. Will Bevis be allowed to deduct any portion of the property taxes paid by the seller prior to the sale? If so, how much? b. What will be Bevis' tax basis in the land? Personal...
38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is the only asset placed in service in 2018. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $200,000 b. $210,000 c. $1,000,000 d. $1,010,000 e. $1,050,000 ANSWER: d Please explain
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