Joe purchased a new five-year class asset on June 1,2010.The asset is listed property (not an automobile).It was used 55% for business and 45% for the production of income.The asset cost $500,000.Joe made the § 179 election.Joe's taxable income would not create a limitation for purposes of the § 179 deduction.If Congress reenacts additional first-year depreciation for 2010,Joe elects not to 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 1,2010.The asset is listed property (not an automobile).It was used 55% for business and 45% for the production of income.The asset cost $500,000.Joe made the § 179 election.Joe's taxable income would not create a limitation for purposes of the § 179 deduction.If Congress reenacts additional first-year depreciation for 2010,Joe elects not to 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 1,2010