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Question
Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention for tax.
Calculate the amount of depreciation for 2018, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.
Recovery year 3-year (200% DB) 5-year (200%DB)
1 33.33 20.00
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