Question

1.A sole proprietorship purchased a machine in June of 2019 that cost $700,000. The machine is a 7 year MACRS asset. Assume the taxpayer wants to maximize current year depreciation and thus wants to utilize 100% bonus depreciation where applicable. What is the total amount of depreciation the taxpayer can take for the machine in 2019?

2.A taxpayer sold a machine that she had owned and used in her business for several years. The gain on the sale was $20,000, and the accumulated depreciation on the machine was $10,000. Assuming the taxpayer had no prior unrecaptured §1231 losses, what amount of tax is due on the gain if the taxpayer is in the 35% tax bracket and faces a preferential rate of 15%?

3.A single taxpayer had $180,000 of wage income and $40,000 of net passive income during the tax year. Assuming the taxpayer had no other sources of income or deductions for the year, what amount of net investment income tax does the taxpayer owe?

Answer 1

Hi

answered by: anonymous