On August 3, 2014, Yang purchases office furniture 7-year property) costing $21,000 for use in her business. She does not wish to use the Section 179 election and makes the election to use the straight-line method over the MACRS recovery period. What is Yang's 2014 cost recovery deduction?

Question

Quizplus · Accepted Answer

Yang uses the straight-line method over the MACRS recovery period for 7-year property. The half-year convention applies, so she can deduct 1/14th of the cost in the first year: $21,000 / 14 = $1,500.

On August 3, 2014, Yang Purchases Office Furniture 7-Year Property)