Determine betsy maximum cost recovery deduction

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Betsy acquired a new network system on June 5, 2016 (5-year class property), for $61,000. She expects taxable income from the business will always be about $175,000 without regard to the §179 election. Betsy will elect §179 expensing. She also acquired 7-year property in July 2016 for $350,000. Determine Betsy’s maximum cost recovery deduction with respect to her purchases in 2016:

Betsy’s max cost recovery deduction =

Jose purchased a vehicle for business and personal use. In 2016, he used the vehicle 11,500 miles for business (80% of total), and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $950 in interest and $95 in property taxes on the car. Calculate the total business deduction related to the car:

Total Deduction schedule C =

Total Deduction schedule A =

Reference no: EM131839808

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