An asset (not an automobile) placed in service in June 2019 has a depreciable basis of $35,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2019?

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Quizplus · Accepted Answer

Under the bonus depreciation rules in effect for assets placed in service in 2019, businesses were allowed to deduct 100% of the cost of qualifying assets in the year they were placed in service. Since the asset in question is not an automobile and assuming it qualifies for bonus depreciation, the entire depreciable basis of $35,000 can be deducted in 2019.

An Asset (Not an Automobile) Placed in Service in June