Quattro Enterprises,a calendar-year taxpayer,leases the twentieth floor of a building downtown.Due to employment expansion,it renovated the entire office space layout,spending $600,000 on these leasehold improvements.The office renovation was completed in May.Quattro also spent $510,000 on new computer systems and office furniture and fixtures in May on which the business used its entire Sec.179 allowance for 2017.What is the maximum depreciation deduction available in 2017 for the leasehold improvements?

Question

Quizplus · Accepted Answer

C)$300,000 of bonus depreciation plus $10,000 depreciation on balance ($300,000 × 1/15 × 1/2).

Quattro Enterprises,a Calendar-Year Taxpayer,leases the Twentieth Floor of a Building