In April of 2017, Brandon acquired equipment which is five- year listed property (not an automobile) for $30,000 and used it 70% for business. Brandon did not claim Sec. 179 or bonus depreciation. In 2018, his business use of the property dropped to 40%. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Brandon must recapture $2,100 as ordinary income because the business use dropped below 50%, requiring recapture of excess depreciation taken in the first year.

In April of 2017, Brandon Acquired Equipment Which Is Five-