Recapture of Depreciation Deductions Due to Personal Use.
Tammy acquired an automo – bile for $20,000 on July 1, 2016. Her business use
of the vehicle is 70% in 2016, 70% in 2017, 40 % in 2018, and 35% in 2019. The
property ‘s MACRS recovery period is 5 years, and Tammy does not claim Sec. 179
expensing or bonus depreciation for it. Assume the half-year convention applies.
a. Compute the MACRS depreciation deductions for each year.
b. What amount of previously claimed depreciation deductions
must Tammy recapture in 2018?
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