Joe purchased a new five-year class asset on June 1, 2017. The asset is listed property (not an automobile). It was used 55% for business and 45% for the production of income. The asset cost $1,000,000. Joe made the § 179 election. Joe's taxable income would not create a limitation for purposes of the § 179 deduction. Joe does not take additional first-year depreciation. Determine Joe's total cost recovery (including the § 179 deduction) for the year.

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The Answer of Joe purchased a new five-year class asset on June 1, 2017. The asset is listed property (not an automobile). It was used 55% for business and 45% for the production of income. The asset cost $1,000,000. Joe made the § 179 election. Joe's taxable income would not create a limitation for purposes of the § 179 deduction. Joe does not take additional first-year depreciation. Determine Joe's total cost recovery (including the § 179 deduction) for the year.

Joe Purchased a New Five-Year Class Asset on June 1