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5. On June 1, 2018, Irene places in service a new automobile (car under 6,000 lbs.)...

5. On June 1, 2018, Irene places in service a new automobile (car under 6,000 lbs.) that cost $21,000. This is the only asset placed in service in 2018. The car is used 100% for business. Irene elects out of bonus depreciation.

  1. Determine the maximum cost recovery deduction for 2018.
  1. Determine the maximum cost recovery deduction for 2019 (year 2).

  1. How would (a) and (b) change if the vehicle cost had been $60,000 in 2018?

2018:

2019:

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