An asset (not an automobile)put in service in June 2018 has a depreciable basis of $535,000 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 2018?

Question

Quizplus · Accepted Answer

Bonus depreciation allows for 100% of the cost of qualifying property to be deducted in the year it is placed in service. Since the asset was placed in service in 2018, the entire depreciable basis of $535,000 can be deducted.

An Asset (Not an Automobile)put in Service in June 2018