Which of the following correctly describe(s) cost recovery of automobiles placed in service in 2018?
A)Total depreciation, including bonus depreciation, cannot exceed $10,000.
B)No cost recovery is allowed if the automobile is used 50% or less for trade or business.
C)The amount of the depreciation deduction cannot exceed $18,000.
D)No cost recovery is allowed for automobiles used for production of income (i.e. rental) activities.

Question

Quizplus · Accepted Answer

The amount of the depreciation deduction for automobiles placed in service in 2018 can exceed $10,000 due to the Tax Cuts and Jobs Act, which increased limits on luxury automobile depreciation. The first-year limit is $18,000 when bonus depreciation is applied.

Which of the Following Correctly Describe(s) Cost Recovery of Automobiles