A residential rental real estate 41214000 x 03636

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a. Residential rental real estate: $41,214,000 x .03636 = $1,498,541 b. Nonresidential rental real estate: $41,214,000 x .02564 = $1,056,727.José purchased a house for $262,250 in 2012. He used the house as his personal residence. In April 2015, when the fair market value of the house was $331,300, he converted the houseto rental property.Therefore, José's basis for cost recovery is $262,250, because the adjusted basis of the houseat the date of the conversion from personal use to rental property ($262,250) is less than the $331,300 fair market value.The cost recovery is $6,756 [$262,250 × 2.576% (Exhibit 8.9, year 1, placed in service in April)].Juan acquires a new 5-year class asset on March 14, 2015, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. On July 15, 2016, Juan sells the asset.2015 MACRS cost recovery [$200,000 x 20% (Exhibit 8.4)]* $40,000 2016 MACRS cost recovery [$200,000 x 32% (Exhibit 8.4) x 0.5]** $32,000Chandler acquired the following new assets during 2015:Date Asset Cost February 1 Agricultural machinery and equipment $75,000 September 3 Calculators 18,000 December 1 Ambulances $95,000 Chandler does not elect immediate expensing under § 179 but takes the additional first-year depreciation for 2015.Agricultural machinery and equipment (seven-year class)
Additional first-year depreciation ($75,000 x .50) $37,500 MACRS cost recovery ($75,000 -$37,500) = $37,500 x 0.25 (Exhibit 8.5—first quarter) $9,375 $46,875 Calculators (five-year class) Additional first-year depreciation ($18,000 x .50) $9,000 MACRS cost recovery ($18,000 - $9,000) = $9,000 x 0.15 (Exhibit 8.5—third quarter) $1,350 $10,350 Ambulances (five-year class) ($95,000 x .50) $47,500 MACRS cost recovery ($95,000 - $47,500) = $47,500 x 0.05 (Exhibit 8.5—fourth quarter) $2,375 $49,875 Total cost recovery $107,100
On August 2, 2015, Wendy purchased a new office building for $3,800,000. On October 1, 2015,she began to rent out office space in the building. On July 15, 2019, Wendy sold the office building.The building was placed in service in October. 2015: $3,800,000 × .00535 (Exhibit 8.9) = $20,330* 2019: $3,800,000 × .02564 (Exhibit 8.9) × 6.5/12 = $52,776Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $400,000 on May 20, 2015. Lori expects the taxable income derived from her business (without regard to the amount expensed under § 179) to be about $800,000. Lori wants to elect immediate
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Oleander Corporation, a calendar year entity, begins business on March 1, 2015. The corporationincurs startup expenditures of $64,000.Note: In your calculations, round any division to 2 decimal places. Round your final answer to the nearest dollar.If Oleander elects § 195 treatment,
Chapter 8 QuizHazel purchased a new business asset (five-year asset) on September 30, 2015, at a cost of

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