In April of 2012,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 2013,his business use of the property dropped to 40%.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Brandon must recapture $2,100 as ordinary income because the business use of the property dropped below 50%, requiring him to recapture the excess depreciation taken in the first year.

In April of 2012,Brandon Acquired Five-Year Listed Property (Not an Automobile)for