Homework_Set_3 - Tax 4001 Judd 2011/2012 Homework Set #3 1....

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Tax 4001 Judd 2011/2012 Homework Set #3 1. On June 15 th , 2011, Paul purchased and placed in service a new car. The purchase price was $40,000. This was the only business-use asset Paul acquired in 2011. He used the car 80% of the time for business and 20% for personal use. Paul used the statutory percentage method of cost recovery. Calculate the total deduction Paul can take in respect to the car for 2011. 2. Kim, a sole proprietor, acquires a new five-year asset on March 14, 2010, for $400,000. This is the only asset acquire by Kim during the year. She does not elect §179. On July 15, 2010, she sells the asset. a. Determine the cost recovery for 2010 b. Determine the cost recovery for 2011 3. In 2011, Tony, Inc has QPAI of $3.1million and taxable income of $3.4 million. Tony pays independent contractors $400,000. Tony’s W-2 wages are $700,000 but only $430,000 of the wages paid are employees engaged in qualified domestic production services. How much is the DPAD for Tony, Inc. in 2011?
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Homework_Set_3 - Tax 4001 Judd 2011/2012 Homework Set #3 1....

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