asssignment 4 - Week 4 Depreciation, Cost Recovery,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 4 Depreciation, Cost Recovery, Amortization, and Depletion Chapter 8 Page 8-34, Problem 23 Discuss the implications of an automobile used in a trade or business having a gross vehicle weight (GVW) exceeding 6,000 pounds. The American jobs Creations Act of 2004 (AJCA) placed a limit on the 179 deduction for certain vehicles not subject to the statutory dollar limits on cost recovery deductions that are imposed on passenger automobiles. This new limit is $25,000. An automobile is listed property and consequently must pass the predominantly business use test to be eligible for MACRS statutory percentage cost recovery. However, by weighing more than 6,000 pounds, the automobile is not subject to the statutory dollar limits on cost recovery. However, legislation enacted in 2004 provides that SUVs with a GVW between 6,000 pounds and 14,000 pounds are subject to a $25,000 ceiling in calculating the § 179 expense rather than the normal ceiling for 2008 of $250,000. pp. 816 and 8-17 Page 8-34 Problem 28 Discuss the amortization of startup expenditures Startup expenditures are partially amortizable under 195 (election required)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

asssignment 4 - Week 4 Depreciation, Cost Recovery,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online