# Lina purchased a new car for use in her business during 2019. The auto was the...

###### Question:

Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all)

a. The vehicle cost 31,600 and business use is 100 percent (ignore §179 expense).

year      Depreciation expense

2019

2020

b. The vehicle cost $78,000, and business use is 100 percent. year Depreciation expense 2019 2020 c. The vehicle cost$78,000, and she used it 80 percent for business.

year      Depreciation

2019

2020

d. The vehicle cost 78,000, and she used it 80 percent for business. She sold it on March 1 of year 2.

year      Depreciation

2019

2020

e. The vehicle cost 78,000, and she used it 20 percent for business.

Year   Depreciation expense

2019

2020

f. The vehicle cost 78,000, and is an SUV that weighed 6,500 pounds. Business use was 100 percent.

Year         Depreciation

2019

2020

Table 1 MACRS Half-Year Convention

Depreciation Rate for Recovery Period
3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
Year 1   33.33%   20.00%   14.29%   10.00%   5.00%   3.750%
Year 2 44.45 32.00 24.49 18.00 9.50 7.219
Year 3 14.81 19.20 17.49 14.40 8.55 6.677
Year 4 7.41 11.52 12.49 11.52 7.70 6.177
Year 5 11.52 8.93 9.22 6.93 5.713
Year 6 5.76 8.92 7.37 6.23 5.285
Year 7 8.93 6.55 5.90 4.888
Year 8 4.46 6.55 5.90 4.522
Year 9 6.56 5.91 4.462
Year 10 6.55 5.90 4.461
Year 11 3.28 5.91 4.462
Year 12 5.90 4.461
Year 13 5.91 4.462
Year 14 5.90 4.461
Year 15 5.91 4.462
Year 16 2.95 4.461
Year 17 4.462
Year 18 4.461
Year 19 4.462
Year 20 4.461
Year 21 2.231

TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter

Depreciation Rate for Recovery Period
5-Year 7-Year
Year 1 35.00% 25.00%
Year 2 26.00 21.43
Year 3 15.60 15.31
Year 4 11.01 10.93
Year 5 11.01 8.75
Year 6 1.38 8.74
Year 7 8.75
Year 8 1.09

TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter

Depreciation Rate for Recovery Period
5-Year 7-Year
Year 1 25.00% 17.85%
Year 2 30.00 23.47
Year 3 18.00 16.76
Year 4 11.37 11.97
Year 5 11.37 8.87
Year 6 4.26 8.87
Year 7 8.87
Year 8 3.34

TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter

Depreciation Rate for Recovery Period
5-Year 7-Year
Year 1    15.00%    10.71%
Year 2 34.00 25.51
Year 3 20.40 18.22
Year 4 12.24 13.02
Year 5 11.30 9.30
Year 6 7.06 8.85
Year 7 8.86
Year 8 5.53

TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter

Depreciation Rate for Recovery Period
5-Year 7-Year
Year 1      5.00%      3.57%
Year 2 38.00 27.55
Year 3 22.80 19.68
Year 4 13.68 14.06
Year 5 10.94 10.04
Year 6 9.58 8.73
Year 7 8.73
Year 8 7.64

EXHIBIT 10-10 Automobile Depreciation Limits

Year Placed in Service 2019* 2018 2017 10,000** 10,000* 3,160* 3,160* 16,000 16,000 5,100 5,100 9,600 9,600 3,050 3,050 5,760 5,760 1,875 1,875

*As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019.
##### Let Hi be a subgroup of G that is not normal in G. Let H-ф-1H1ф be a cong gate subgroup. (i) ф is...
Let Hi be a subgroup of G that is not normal in G. Let H-ф-1H1ф be a cong gate subgroup. (i) ф is an automorphism of F. Show that its restricts to an isomorphism ф : FH2-> FHI. (iüi) Show that if a e Fla but not in Flh n Fta, and if f is the irreducible polynomial for...
##### Compute cost of goods manufactured. Glavine Corporation incurred the following costs while manufacturing its product. Materials...
Compute cost of goods manufactured. Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on plant Deli...
##### Need help with this Find the sum of the following four vectors ((a) and (b) for...
need help with this Find the sum of the following four vectors ((a) and (b) for x and y components respectively), and as (c) a magnitude and (d) an angle relative to +x (including sign plus or minus). : 8.30 m, at 18.0° counterclockwise from + 7 : 22.0 m, at 9.10° counterclockwise from +y...
##### 8 7. Suppose you buy your home when you are 35. and so it will be...
8 7. Suppose you buy your home when you are 35. and so it will be paid off by the time you are 65, when you retire. It would be wise to save enough money to take monthly payouts until you are age 90 Older people who no longer have an income often move their investments to a more secure, lower-intere...
##### A right triangle has an angle of 22.5 degrees and adjacent side of 1.75". What is length of opposite side?
A right triangle has an angle of 22.5 degrees and adjacent side of 1.75". What is length of opposite side?...