Wellington Apartments purchases an apartment building on November 9,2013,for $1,000,000 (exclusive of the cost allocated to the land).What is the 2013 MACRS depreciation deduction?

Question

Quizplus · Accepted Answer

To calculate the MACRS depreciation deduction, we first need to determine the property's class life. Apartment buildings have a class life of 27.5 years. Since the property was purchased on November 9, 2013, it was in service for 53/365 days in 2013. Therefore, the depreciation deduction for 2013 would be:

($1,000,000 / 27.5) x (53/365) x 0.2 = $4,550 (rounded to the nearest dollar).

So, the best choice is B.

Wellington Apartments Purchases an Apartment Building on November 9,2013,for $1,000,000