Taylor LLC purchased an automobile for $55,000 on July 5, 2019.What is Taylor's maximum depreciation deduction for 2019 (including bonus depreciation)if its business use percentage is 100 percent?

Question

Quizplus · Accepted Answer

Since the automobile was purchased and put into service in 2019, Taylor LLC can take advantage of 100% bonus depreciation. Therefore, the maximum depreciation deduction for 2019 is $55,000 x 100% = $55,000, of which $18,000 is bonus depreciation (assuming the automobile is not qualified improvement property). Therefore, the answer is (C) $18,000.

Taylor LLC Purchased an Automobile for $55,000 on July 5