A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?

hi your question lacks the options here is the options and the answer

a. $1,000,000

b. $200,000

c. $1,050,000

d. $1,026,000

e.  $210,000

answer : $1026000 ( D )

Explanation:

properties placed in service in 2019 = $1050000

The threshold for the year 2019 under the section 179 = $2550000

Maximum expense/deduction before phase out under the section 179 = $1020000

The depreciable value =$1050000 - $ 1020000 = $30000

The MACRS depreciation half - year convention under 5 years = 20% of depreciable value = 20% * 30000

                               = $6000

hence the total cost recovery = MACRS + Maximum expense/deduction

                                                 = $6000 + $1020000

                                                 = $1026000

almost done 23 out of 25

answer; (inseparability);