Enrico is a self-employed electrician.In May of the current year,Enrico acquired a used van (5-year property)for $12,000.He used the van 80% for business and 20% for personal purposes.Enrico does not take any Sec.179 deduction.The maximum depreciation deduction for the van is
A)$1,200.
B)$2,400.
C)$6,720.
D)$1,920.

Question

Quizplus · Accepted Answer

D)Although the van is listed property,since it is used more than 50% in trade or business,MACRS depreciation may be used.The asset is not eligible for bonus depreciation.Depreciation is $12,000 × .20 × .80 = $1,920.Only the portion used for trade or business is depreciable.

Enrico Is a Self-Employed Electrician