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On August​ 21, 2019,​ Condor, Inc acquired and placed into service residential rental​ property, which cost​...

On August​ 21, 2019,​ Condor, Inc acquired and placed into service residential rental​ property, which cost​ $430,000; the cost of the underlying land has been excluded. Condor annually elects the maximum allowed Sec. 179 deduction but does not use any available bonus depreciation. The total tax depreciation for the year is​ (rounded to nearest whole​ dollar).

A. $5,864

B. $6,515.

C. $4,135.

D. $15,636.

E. $430,000

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Answer #1

Answer -

Step - (1) - Facts of the case given -

On August​ 21, 2019,​ Condor, Inc acquired and placed into service residential rental​ property, which cost​ $430000; the cost of the underlying land has been excluded. Condor annually elects the maximum allowed Sec. 179 deduction but does not use any available bonus depreciation.

.

Step - (2) - Analysis and Conclusion -

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of Qualifying Property.

To qualify for the Section 179 Deduction, the qualifying property must be placed into service between January 1, 2019 and December 31, 2019.

In the given case, Residential rental​ property is a Qualifying Property, and deduction can be claimed for full purchase price.

Therefore, The total tax depreciation for the year = $430000.

Hence, Option- (E) is Correct.

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