Question

Boxer LLC has acquired various types of assets recently used 100% in its trade or business....

Boxer LLC has acquired various types of assets recently used 100% in its trade or business. Below is a list of assets acquired during 2016 and 2017:

Asset Cost Basis Date Placed in Service
Machinery 50,000 September 1, 2016
Apartment building 500,000 June 1, 2016
Furniture 510,000 May 1, 2017
Computer equipment 510,000 May 10, 2017
Automobile 15,000 March 16, 2017
Office building 600,000 June 24, 2017


Boxer did not elect §179 expense and elected out of bonus depreciation in 2016, but would like to elect §179 expense for 2017 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2017, including Sec. 179 expense (ignore bonus depreciation for 2017).

2017 Depreciation, including Sec. 179 expense

Machinery:

Apartment building:

Furniture:

Computer equipment:

Automobile:

Office building:
Business   Accounting   
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Answer #1

Asset

Depreciable life (years)

Depreciation for year 2017 (in $)

Sec. 179

Machinery

7

7143

NA, time to elect expires

Apartment Building

27.5

18182

NA, time to elect expires

Furniture

7

43515*

NA, not qualified property

Automobile

5

-

15000

Computer Equipment

7

-

510000

Office Building

20

15617**

NA, not qualifying property

84,457

5,25,000

*charged proportionately for 218 days of 2017 year

** charged proportionately for 190 days of 2017 year

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