On June, 20, 2019, Simon Corporation (a calendar-year corporation) purchased and placed in service a new automobile costing $68,000.This vehicle is used 100% for business.Simon makes whatever elections are necessary to maximize its overall depreciation deduction for the year of acquisition. What is Simon Corporation's maximum cost recovery deduction for the automobile for 2022?
A)$0
B)$9,581
C)$9,700
D)$16,100

Question

Quizplus · Accepted Answer

For vehicles placed in service in 2019 and used 100% for business, the maximum depreciation limits under the luxury auto depreciation caps are specified by the IRS. In the fourth year of service, which is 2022 for a vehicle placed in service in 2019, the maximum depreciation deduction is $9,581, assuming the taxpayer elects to use the maximum allowable depreciation deductions including bonus depreciation in the first year.

On June, 20, 2019, Simon Corporation (A Calendar-Year Corporation) Purchased