Tracy acquires an automobile (MARCS 5 year recovery) on March 1, 2009. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile costs $36,000, and no amounts are expensed under Sec. 179 or bonus depreciation.
a. What is depreciation for 2009-2011 and any subsequent years?
b. How would your answer to Part A change if the vehicle were a SUV with a gross vehicle weight rated (GVWR) of over 6,000 pounds and Tracy elected to expense the SUV under Sec. 179?© BrainMass Inc. brainmass.com June 3, 2020, 11:58 pm ad1c9bdddf
The solution discusses luxury auto limitations.