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8-43 On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class...

8-43 On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset costing $550,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2016, his business generated a net income of $945,780 before any § 179 immediate expense election.

Determine the maximum deductions that Javier can claim with respect to this asset in 2016:

Section 179 expense:

Aditional first year depreciation:

MACRS Recovery:

Total deduction:

Solutions

Expert Solution

maximum deduction = 507146

deduction in 2017= MACRS basis of property * rate= 50000* 24.49%= 12245

ekkarill92 answered 1 year ago
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