Dylan paid $640 for a new refrigerator he placed in service in service in his rental house in may 2018. he did not take the special depreciation allowance and is depreciating the refrigerator using regular MACRS and the half-yea convention. Dylan sold the rental house with the refrigerator in March 2019, how much will he deduct for depreciation on the refrigerator in 2019?
Ans | ||||||||
The refigrator which is used in rental property will be deporeciated over a period of 5 years using MACRS depreciation. | ||||||||
in $ | ||||||||
5 year year 2 depreciation rate is 32% | ||||||||
640*32%*3/12 | 51.2 | |||||||
If it is not stand alone than we will take 27.5 years rental property depreciation rate | ||||||||
If in case the answer shows incorrect than I will put the answer for 27.5 year depreciation table | ||||||||
answer | ||||||||
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