Question

In January of 2019, Carol Brady is trying to decide if she should purchase a new vehicle for her business, We Are Brady, Inc. Carol has asked you to calculate the amount of depreciation that she will be able to deduct for each of the following vehicles that she is considering purchasing. Assume that she will purchase the vehicle in September, 2019, and also assume that no other assets will be purchased in 2019.

1. If Carol purchases a new Porsche 911 for $100,000, what is the maximum amount that Carol may deduct in 2019? Carol plans to drive the Porsche 75% of the time for business. Carol elects to take the additional first-year depreciation.

2. If Carol purchases a new Hummer (an SUV with GVRW > 6,000) for $68,500, what is the maximum amount that Carol may deduct in 2019? Carol plans to drive the Hummer 100% of the time for business.

1. If Carol elects not to take the additional first-year depreciation, what is the maximum amount that she may deduct in 2019?

2. Carol elects to take the additional first-year depreciation, what is the maximum amount that she may deduct in 2019?

Answer 1

ANSWER:

Req.A

Song buys another Porsche 911 for $100,000, Carol may deduct $10,100 in 2019.

Song intends to drive the, Porsche 75% of the ideal opportunity for business, at that point Bonus deterioration are reduced proportionately.

Reward devaluation is $18,100. As hymn utilizes vehicle 75% of time for Business. In this way, Bonus Depreciation will be $18,100 * 75% = $13,575

Req.B

I. On the off chance that Carol chooses not to take the extra first year deterioration, In Section 179, derivation is restricted to $25,000 for trucks and SUVs. Along these lines most extreme $25,000 Carol may deduct in 2019.

ii. On the off chance that Carol chooses for take the extra first-year deterioration, 100% reward devaluation is took into consideration substantial vehicle. Along these lines Carol may deduct $68,500 in 2019.