On August 11,2019,Nancy acquired and placed into service residential rental property,which cost $430,000; the cost of the land has been excluded.Nancy annually elects the maximum allowed Sec.179 deduction.The total depreciation for the year is (rounded)
A)$5,865.
B)$4,141.
C)$5,117.
D)$15,636.

Question

Quizplus · Accepted Answer

Residential rental property is depreciated using the straight-line method over 27.5 years. The annual depreciation is $430,000 / 27.5 = $15,636. However, since the property was placed in service in August, only 4.5 months of depreciation can be taken for the first year: $15,636 * (4.5/12) = $5,865.

On August 11,2019,Nancy Acquired and Placed into Service Residential Rental