A nonresidential business building is placed in service by a calendar year tax payer on March 3 for $300,000. a. What is the MACRS-GDS property class? b. Calculate the depreciation deduction for years 1, 4, and 8 if it is kept longer than 8 years. c. Calculate the depreciation deduction for years 1, 4, and 8 if it is sold on August 12 in the 8th calendar year. d. Why is it highly unlikely the building will ever be completelydepreciated?
A nonresidential business building is placed in service by a calendar year tax payer on March 3 for $300,000. a. What is the MACRS-GDS property class? b. Calculate the depreciation deduction for years 1, 4, and 8 if it is kept longer than 8 years. c. Calculate the depreciation deduction for years 1, 4, and 8 if it is sold on August 12 in the 8th calendar year. d. Why is it highly unlikely the building will ever be completelydepreciated?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 40P
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A nonresidential business building is placed in service by a calendar year tax payer on March 3 for $300,000. a. What is the MACRS-GDS property class? b. Calculate the
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