Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: We will use half year convention Half year convention rate are :-20% for first year and 32% for…

Q: Lina purchased a new car for use in her business during 2020. The auto was the only business asset…

A: Depreciation is the decrement in the value of fixed tangible asset due to usage, wear and tear…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: MACRS Depreciation: A greater accelerated depreciation and tax savings  is allowed over the life of…

Q: Lina purchased a new car for use in her business during 2019. The auto was the only business asset…

A: Depreciation is a charge applied to assets at the conclusion of a period that reduces their entire…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: D. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: However if vehicle is more than 6000 pounds than sec 179 can be claimed

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is the amount that is charged on the fixed assets by which the asset value decreases…

Q: On August 15, 2021, Bob bought a rental house. The property cost $310,000. Of this, the land was…

A: As per GDS MACRS method, for residential rental property- 27.5 year, straight line class with mid…

Q: Jim had a car accident in 2019 in which his car was completely destroyed. At the time of the…

A: Formula: Deductible loss = Car value - ( car value x insurance recovery ) Car value and insurance…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Vehicle cost = $92,000 Business use = 20%   Computation of maximum depreciation for the automobile…

Q: On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: [The following information applies to the questions displayed below.] Lina purchased a new car for…

A: Depreciation refers to the amount by which is charged on fixed assets and by which the asset value…

Q: Kyle purchased a car for $12,300 on March 2, 2019. He uses the car 35% for business use and 65% for…

A: Depreciation- It is the gradual decline in the book value of a fixed asset due to various reasons…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Modified Accelarted Cost Recovery System of depreciation allows…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Maximum auto Depreciaton-2021 Annual Depreciation  is limited to $10,200 for first year without…

Q: Jenny's personal car was totally destroyed in a hurricane in 2021, the area was declared a Federal…

A: Actually Paid amount: $15,000 AGI: $50,000 We need to compute the value of income which should be…

Q: Unfortunately, Betty’s business was not profitable. She decided to sell the business and seek work…

A: Given, Advertisement expense = $22,000

Q: On February 2, 2020, Katie purchased and placed in service a new $18,500 car. The car was used 65%…

A: The answer is as fallows

Q: Riley operates a delivery business . In 2021 , the van he used was totally destroyed in a traffic…

A: Book value of van at the time of accident = $ 8,000

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Vehicle cost = $92,000 Use for business purpose = 20%   Calculation of maximum depreciation…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Sec 179 expense allows expensing of the cost of purchase of qualified business property. It limits…

Q: [The following information applies to the questions displayed below.] Lina purchased a new car for…

A: It is given that the car us used for business purpose for 20%. Hence the depreciation allowed will…

Q: Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car…

A: Business mileage deduction=9,000×$0.575 per mile=$5,175 Thus, the business mileage deduction is…

Q: In April 2019, Mario purchased a new refrigerator for $700 and placed it in service in his rental…

A: Section 1245 assets: Comprises personal property used in trade or business and held for over 12…

Q: Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he…

A: Answer: Unfortunately the IRS prohibits the deductions of rental losses against any other sources of…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is a charge applied to assets at the conclusion of a period that reduces their entire…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Description 2021 Amount 2022 Amount Explanation (1) Original basis of auto $92000 n/a-…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: In 2019, Clem and Chloe, a married couple, sold their principal residence that they have owned and…

A: If a person is selling a house after having lived in the house of 5 years or more will get an…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: AGI is adjusted gross income of the business and by deducting specific deductions from AGI, taxable…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Automobiles under MACR depreciation is classified under 5 year property class, 200%, half year…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Business asset refers to those resources in which a business has invested over time for example…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation refers to the amount that is charged on the fixed assets by which the asset value…

Q: All 3 loans were taken out in 2019. How much interest may Ally claim as an itemized deduction in…

A: Itemized deductions:Itemized deduction are those eligible expenses that are deducted from the…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation refers to the concept of computing the reduction in the value of an asset incurred…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: As per luxury auto cap , maximum depreciation allowed is determined for luxury vehicles. We assume…

Q: as follows: 9,000 miles for business, 2,000 miles for personal use, 2,500 miles for a move to a new…

A: The standard mileage method refers to the form of the method used to calculate the business use of…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: [The following information applies to the questions displayed below.] Lina purchased a new car for…

A: Depreciation Deduction: It is necessary to understand the idea of depreciation in order to write off…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: SOLUTION- SEC 179 IS GENERALLY NOT ALLOWED FOR VEHICLES .   HOWEVER IF VEHICLE IS MORE THAN 6000…

Q: On 1 June 2018, Toby purchased a new truck to use in his business for $650,000. The Commissioner's…

A: Depreciation expense is the part of an asset charged as expense when the asset is being used in the…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: MACRS stands for modified accelerated cost recovery system which is a system of depreciation and it…

Q: On April 30, 2019, Leo purchased and placed in service a new car that cost $76,200. The business use…

A: Given information is: Cost of new car = $76200

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: MARCS depreciation is the system which encourages the investors for investing in the depreciable…

Q: In 2019, Kelly buys a truck costing $35,000. She is going to use it for her construction business to…

A:

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: Rental income: Income which one earned from either commercial or personal property let out and earns…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: Itemized deductions refer to certain expenses incurred by the taxpayer that are allowed to be…

Q: In the year 2021, John spends $37.000 on a new automobile. What is the maximum permitted deduction…

A: The bonus depreciation is an tax incentive that allows a business to claim large amount of…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Description 2021 Amount Explanation 1) Original Basis of Auto $92,000 Given in the problem…

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.