Rustin bought 7-year class property on May 15, 2019, for $1,248,000. Rustin elects § 179 and straight-line cost recovery, but not additional first-year depreciation.. Rustin's taxable income would not create a limitation for purposes of the § 179 deduction. Determine the maximum cost recovery deduction Rustin can claim for 2019.

What will be an ideal response?


§ 179 expense election$1,020,000
Cost recovery [($1,248,000 – $1,020,000)× 0.0714 (Exhibit 8.5)]    16,279
Total deduction$1,036,279
?

Business

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