In April of 2016,Brandon acquired five-year listed property (not an automobile)for $30,000 and used it 70% for business.No election was made regarding Sec.179 and bonus depreciation was not available.In 2017,his business use of the property dropped to 40%.Which of the following statements is true?
A)The change does not affect Brandon's previous depreciation.
B)Brandon must recapture $2,100 as ordinary income.
C)Brandon must recapture $4,200 as ordinary income.
D)Brandon must amend the previous tax return and recompute depreciation.

Question

Quizplus · Accepted Answer

B)The 2016 depreciation taken was:
 11ea7cb8_54df_a1e9_928c_b3921491c124_TB1258_00 *Must use ADS straight-line because the computer is listed property used 50% or less in trade or business.

In April of 2016,Brandon Acquired Five-Year Listed Property (Not an Automobile)for