Eric is a self-employed consultant.In May of the current year,Eric acquired a computer system (5-year property)for $6,000 and used the computer 80% for business and 20% for personal purposes.Eric does not take any Sec.179 deduction or bonus depreciation.The maximum depreciation deduction for is

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Eric can only depreciate the portion of the computer that was used for business purposes, which is 80%. Therefore, Eric's depreciable basis for the computer is $4,800 ($6,000 x 80%). Since Eric did not take any Sec. 179 deduction or bonus depreciation, he must use the straight-line method of depreciation over 5 years. Thus, the maximum depreciation deduction for the current year is $960 ($4,800 ÷ 5).

Eric Is a Self-Employed Consultant