Chaz Corporation has taxable income in 2019 of $368,000 for purposes of computing the §179 expense...

Chaz Corporation has taxable income in 2019 of $368,000 for purposes of computing the §179 expense and acquired the following assets during the year:

	Placed in
Asset	Service		Basis
Office furniture	September 12	$	691,000
Computer equipment	February 10		934,000
Delivery truck	August 21		67,000
Qualified improvement property	September 30		1,535,000
Total		$	3,227,000

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

Expert Solution

Year	Asset	Amount	Depreciation 2019	Book value
2019	Office furniture	6,91,000.00	98,714.00	5,92,286.00
2019	Computer Equipment	9,34,000.00	1,86,800.00	7,47,200.00
2019	Delivery Truck	67,000.00	13,400.00	53,600.00
2019	Qualified Improvement Property	15,35,000	39,359.00	14,95,641.00
2019	Maximum Total Depreciation allowable		3,38,273.00

Table 1 Office furniture
Year	Adjusted Basis	Rate %	Depreciation	Cumulative	Book Value	Method
2019	6,91,000.00	14.29	98,714	98,714	5,92,286	DB
2020	5,92,286.00	24.49	1,69,224	2,67,939	4,23,061	DB
2021	4,23,061.00	17.49	1,20,875	3,88,813	3,02,187	DB
2022	3,02,187.00	12.49	86,339	4,75,152	2,15,848	DB
2023	2,15,848.00	8.92	61,671	5,36,823	1,54,177	SL
2024	1,54,177.00	8.92	61,671	5,98,494	92,506	SL
2025	92,506.00	8.92	61,671	6,60,165	30,835	SL
2026	30,835.00	4.46	30,835	6,91,000	0	SL

Table 2- Computer Eqipment
Year	Adjusted Basis	Rate %	Depreciation	Cumulative	Book Value	Method
2019	9,34,000	20	1,86,800	1,86,800	7,47,200	DB
2020	7,47,200	32	2,98,880	4,85,680	4,48,320	DB
2021	4,48,320	19.2	1,79,328	6,65,008	2,68,992	DB
2022	2,68,992	11.52	1,07,597	7,72,605	1,61,395	SL
2023	1,61,395	11.52	1,07,597	8,80,202	53,798	SL
2024	53,798	5.76	53,798	9,34,000	0	SL

Year	Adjusted Basis	Rate %	Depreciation	Cumulative	Book Value	Method
2019	67,000	20	13,400	13,400	53,600	DB
2020	53,600	32	21,440	34,840	32,160	DB
2021	32,160	19.2	12,864	47,704	19,296	DB
2022	19,296	11.52	7,718	55,422	11,578	SL
2023	11,578	11.52	7,718	63,141	3,859	SL
2024	3,859	5.76	3,859	67,000	0	SL

Table 4- Qualified Improvement Property
Year	Adjusted Basis	Rate %	Depreciation	Cumulative	Book Value	Method
2019	15,35,000	2.56	39,359	39,359	14,95,641	DB
2020	14,95,641	5	76,700	1,16,059	14,18,941	DB
2021	14,18,941	4.74	72,766	1,88,825	13,46,175	DB
2022	13,46,175	4.5	69,035	2,57,859	12,77,141	DB
2023	12,77,141	4.27	65,494	3,23,354	12,11,646	DB
2024	12,11,646	4.05	62,136	3,85,489	11,49,511	DB
2025	11,49,511	3.84	58,949	4,44,439	10,90,561	DB
2026	10,90,561	3.64	55,926	5,00,365	10,34,635	DB
2027	10,34,635	3.46	53,058	5,53,423	9,81,577	DB
2028	9,81,577	3.28	50,337	6,03,760	9,31,240	DB
2029	9,31,240	3.11	47,756	6,51,516	8,83,484	DB
2030	8,83,484	2.95	45,307	6,96,823	8,38,177	DB
2031	8,38,177	2.8	42,983	7,39,807	7,95,193	DB
2032	7,95,193	2.66	40,779	7,80,586	7,54,414	DB
2033	7,54,414	2.52	38,688	8,19,274	7,15,726	DB
2034	7,15,726	2.39	36,704	8,55,978	6,79,022	DB
2035	6,79,022	2.27	34,822	8,90,799	6,44,201	DB
2036	6,44,201	2.15	33,036	9,23,835	6,11,165	DB
2037	6,11,165	2.04	31,342	9,55,177	5,79,823	DB
2038	5,79,823	1.94	29,735	9,84,911	5,50,089	DB
2039	5,50,089	1.84	28,210	10,13,121	5,21,879	SL
2040	5,21,879	1.84	28,210	10,41,331	4,93,669	SL
2041	4,93,669	1.84	28,210	10,69,540	4,65,460	SL
2042	4,65,460	1.84	28,210	10,97,750	4,37,250	SL
2043	4,37,250	1.84	28,210	11,25,960	4,09,040	SL
2044	4,09,040	1.84	28,210	11,54,169	3,80,831	SL
2045	3,80,831	1.84	28,210	11,82,379	3,52,621	SL
2046	3,52,621	1.84	28,210	12,10,589	3,24,411	SL
2047	3,24,411	1.84	28,210	12,38,798	2,96,202	SL
2048	2,96,202	1.84	28,210	12,67,008	2,67,992	SL
2049	2,67,992	1.84	28,210	12,95,218	2,39,782	SL
2050	2,39,782	1.84	28,210	13,23,427	2,11,573	SL
2051	2,11,573	1.84	28,210	13,51,637	1,83,363	SL
2052	1,83,363	1.84	28,210	13,79,847	1,55,153	SL
2053	1,55,153	1.84	28,210	14,08,056	1,26,944	SL
2054	1,26,944	1.84	28,210	14,36,266	98,734	SL
2055	98,734	1.84	28,210	14,64,476	70,524	SL
2056	70,524	1.84	28,210	14,92,686	42,315	SL
2057	42,315	1.84	28,210	15,20,895	14,105	SL
2058	14,105	0.92	14,105	15,35,000	0	SL

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