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
|