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    Combined Depreciation

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    6. Answer_____________ Michelle has an advertising business that she reports on Schedule C of her personal tax return. On May 1, 2006, Michelle purchased a Toyota Camry for $22,000. She purchased a copier for $30,000 on October 15th and office furniture for $50,000 on November 1st. All assets acquired are new. The Camry is used 90% for business. Her income before depreciation and Section 179 expense is $250,000. If she wants to maximize her deductions in 2006, what is the maximum combined depreciation and Section 179 deduction?

    a. $82,664
    b. $82,960
    c. $99,800
    d. $102,000

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    Solution Preview

    Full Sec 179 can be taken for both the copier and the office furniture, Sec 179 is ...

    Solution Summary

    6. Answer_____________ Michelle has an advertising business that she reports on Schedule C of her personal tax return. On May 1, 2006, Michelle purchased a Toyota Camry for $22,000. She purchased a copier for $30,000 on October 15th and office furniture for $50,000 on November 1st. All assets acquired are new. The Camry is used 90% for business. Her income before depreciation and Section 179 expense is $250,000. If she wants to maximize her deductions in 2006, what is the maximum combined depreciation and Section 179 deduction?

    $2.19

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