A taxpayer places a $50,000 5-year recovery period asset in service in 2018.This is the only asset placed in service in 2018.Assuming half-year convention, no immediate expensing, what is the amount of bonus depreciation?

Question

Quizplus · Accepted Answer

In 2018, the Tax Cuts and Jobs Act allows for 100% bonus depreciation on qualified property, which includes new and used property with a recovery period of 20 years or less. Therefore, the entire $50,000 can be taken as bonus depreciation.

A Taxpayer Places a $50,000 5-Year Recovery Period Asset in Service