A taxpayer places a $50,000 5-year recovery period asset in service in 2017.This is the only asset placed in service in 2017.Assuming half-year convention,no election to expense and no income limitation,what is the amount of total cost recovery deduction?

Question

Quizplus · Accepted Answer

The total cost recovery deduction would be $6,000 per year for five years (since the asset has a 5-year recovery period and we're using the half-year convention), for a total of $30,000 over the 5-year recovery period.

A Taxpayer Places a $50,000 5-Year Recovery Period Asset in Service