Enrico is a self-employed electrician. In May of the current year, Enrico acquired a used van (5-year property) for $12,000. He used the van 80% for business and 20% for personal purposes. Enrico does not apply Sec. 179 or bonus depreciation. The maximum depreciation deduction for the van is
A) $1,200.
B) $2,400.
C) $6,720.
D) $1,920.
D) $1,920.
Although the van is listed property, since it is used more than 50% in trade or business, MACRS depreciation may be used. Depreciation is $12,000 × .20 × .80 = $1,920. Only the portion used for trade or business is depreciable.
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