A taxpayer places a $50,000 5-year recovery period asset in service in 2015. This is the only asset placed in service in 2015. Assuming half-year convention, no immediate expensing, and no income limitation, what is the amount of bonus depreciation (assuming extended into 2015)?

Question

A taxpayer places a $50,000 5-year recovery period asset in service in 2015. This is the only asset placed in service in 2015. Assuming half-year convention, no immediate expensing, and no income limitation, what is the amount of bonus depreciation (assuming extended into 2015)?​

Quizplus · Accepted Answer

Bonus depreciation is equal to 50% of the cost of the asset, so in this case it would be 0.5 x $50,000 = $25,000.

A Taxpayer Places a $50,000 5-Year Recovery Period Asset in Service