Aaron purchases a taxicab (5-year MACRS property)for $20,000 on December 3,2017.This is the only business asset Aaron acquires in 2017.He does not desire to use the Section 179 election.What is the maximum amount of depreciation that he can deduct in 2017?

Question

Quizplus · Accepted Answer

Since the taxicab is a 5-year MACRS property and was placed in service in the last quarter of the year, the mid-quarter convention applies. For the first year, Aaron can deduct 5% of the cost, which is $1,000.

Aaron Purchases a Taxicab (5-Year MACRS Property)for $20,000 on December