In July of 2013,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.No election is made regarding Sec.179.Assuming her business use remains at 80%,Pat can take a maximum depreciation deduction in 2013 of

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Since no election for Section 179 is made, Pat must use regular MACRS depreciation. The automobile is considered 5-year property, and since it was placed in service in July, it falls under the half-year convention. Using MACRS depreciation with the half-year convention and 80% business use, Pat's maximum depreciation deduction in 2013 is $8,928.

In July of 2013,Pat Acquired a New Automobile for $28,000