Enrico is a self- employed electrician. In May of the current year, Enrico acquired a used van (5- year property) for $12,000. He used the van 80% for business and 20% for personal purposes. Enrico does not apply Sec. 179 or bonus depreciation. The maximum depreciation deduction for the van is

Question

Quizplus · Accepted Answer

The van is 5-year property, and using the MACRS depreciation method, the first-year depreciation rate is 20%. Since Enrico uses the van 80% for business, the depreciation is $12,000 x 20% x 80% = $1,920.

Enrico Is a Self- Employed Electrician