Hans purchased a new passenger automobile on August 17,2014,for $30,000.During the year the car was used 40% for business and 60% for personal use.Determine his cost recovery deduction for the car for 2014.
A)$500
B)$1,000
C)$1,224
D)$1,500
E)None of these

Question

Quizplus · Accepted Answer

The car,which is listed property,does not pass the predominantly business usage test.Therefore,neither § 179 expensing nor additional first­year depreciation (if available)can be taken.
$30,000 × .100 = $3,000 (not over $3,160 limit*).$3,000 × 40% = $1,200.
*These depreciation limits are indexed annually.

Hans Purchased a New Passenger Automobile on August 17,2014,for $30,000