What is the maximum total depreciation deduction

Assignment Help Accounting Basics
Reference no: EM132460067

Chaz Corporation has taxable income in 2019 of $312,000 for purposes of computing the §179 expense and acquired the following assets during the year:

ASSET Placed in Service Basis

Office furniture September 12                             $780,000

Computer equipment February 10                          930,000

Delivery truck August                                        21 68,000

Qualified improvement property September 30        1,500,000

Total                                                               $3,278,000

Question 1: What is the maximum total depreciation deduction that Chaz may deduct in 2019?

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 S

 

 

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 2c NLACRS 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

1822

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

Month Property Placed in Service

 

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Year 1

3.485%

3.182%

2.879%

2.576%

2.273%

1.970%

1.667%

1.364%

1.061%

0.758%

0.455%

0.152%

Year 2-9

3.636

3.636

3.636

3.636

3.636

3.636

3.636

3.636

3.636

3.636

3.636

3.636

Year 10

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 11

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 12

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 13

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 14

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 15

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 16

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 17

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 18

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 19

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 20

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 21

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 22

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 23

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 24

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 25

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 26

3.637

3.637

3.637

3.637

3.637

3.637

3.636

3.636

3.636

3.636

3.636

3.636

Year 27

3.636

3.636

3.636

3.636

3.636

3.636

3.637

3.637

3.637

3.637

3.637

3.637

Year 23

1.97

2.273

2.576

2.879

3.182

3.485

3.636

3.636

3.636

3.636

3.636

3.636

Year 29

 

 

 

 

 

 

0.152

0.455

0.758

1.061

1.364

1.667

 

MOnfil CYO OW Flared In Sallee

 

Month 1

Month 2

Month 3

Month 0

Month 5

Month 6

Month 7

Month S

Month 9

Month 10

Month II

Month 12

Year 1

3.042%

2.778%

2.513%

2.249%

1.984%

1.720%

1.455%

1.190%

0.926%

0.661%

0.397%

0.132%

Year 2-7

3.175

3.175

3.175

3.175

3.175

3.175

3.175

3.175

3.175

3.175

3.175

3.175

l'ear 8

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.175

3.175

3.175

3.175

3.175

Year 9

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 10

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 11

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 12

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 13

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 14

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 15

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 16

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 17

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 13

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 19

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 20

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 21

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 22

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 23

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.115

3.174

3.175

3.174

3.175

Year 24

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 25

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 26

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 27

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 23

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 29

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 30

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

Year 31

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

3.174

3.175

Year 32

1.720

1.984

2.249

2.513

2.778

3.042

3.175

3.174

3.175

3.174

3.175

3.174

Year 33

 

 

 

 

 

 

0.132

0.397

0.661

0.926

1.190

1.455

TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993)

Month Property Placed in Service

 

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month S

Month 9

Month 10

Month 11

Month 12

Year 1

2.461%

2.247%

2.033%

1.8194

1.605%

1.391%

1.177%

0.963%

0.749%

0.535%

0.321%

0.107%

Year 2-39

2.564

2.564

2.564

2.564

2.564

2.564

2.564

2.564

2.564

2.564

2.564

2.564

Year 40

0.107

0.321

0.535

0.749

0.963

1.177

1.391

1.605

1.819

2.033

2.247

2.461

Reference no: EM132460067

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