On February 15, 2018, Leo purchased and placed in service a new car that cost $54,600....

On February 15, 2018, Leo purchased and placed in service a new car that cost $54,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles.

a. What MACRS convention applies to the new car? Half-year

b. Is the automobile considered "listed property"? Yes

c. Leo's cost recovery deduction in 2018 is $ and for 2019 is $.

Solutions

Expert Solution

a. Half Year convention applies to the new car.

b. To be considered listed property, an item must be used for more than 50% for a company's business. here business use of car is 100% hence it is considered "Listed property".

c. Cost recovery deduction in-

2018 = $10920

2019 = $ 28392

ekkarill92 answered 1 year ago

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