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 |
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