For calculation of MACRS Depreciation if the table is given, don't we need to apply Half year convention as in 6/12, or does the table giving % already has that in it?
Ninja Sim 41,
Andrea and Buffy formed a partnership in June of Year 1 and began operations on September 1 of Year 1. The partners share profits and losses 40% and 60%, respectively. Andrea contributed office furniture to the partnership that has an adjusted basis of $30,000 and a fair market value of $45,000. Buffy contributed $33,000 in cash and three personal computers that have an adjusted basis of $12,000 and a fair market value of $12,000. The partnership borrowed $12,000 from the bank to purchase office supplies; both partners are personally liable for the debt.
Using the MACRS table below, complete the table following to determine the partnershipโs tax depreciation expense for Year 1. Assume that none of the original cost of any asset was expensed by the partnership under the provisions of Section 179 and that the partnership elected not to claim first-year bonus depreciation on any asset.
Explanation of Depreciation:
Office furniture is classified as 7-year property; the depreciation expense for the first year is $4,287, which is $30,000 x 14.29%.
Personal computers are classified as 5-year property; the depreciation expense for the first year is $2,400, which is $12,000 x 20%.
FAR : 68, 74, 83 Thank you God ๐
BEC : 78 (8/27) ๐
REG : 72 ,80 (2/25) ๐
AUD : 69,67, 07/23
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