Adjusted cost basis X 30% Special bonus depreciation = Special bonus depreciation amount
Adjusted cost basis - 30% bonus depreciation amount = Adjusted cost basis to use for current and future year depreciation calculations
$21,814 cost basis * 90% business use = $19,633 business portion cost basis $19,633 - Section 179 Deduction $10,000 = $9,633 Adjusted cost basis $9,633 * 30% bonus special depreciation allowance = $2,890 bonus depreciation amount $9,633 - $2,890 = $6,743 new cost basis for depreciation calculations for current year and future years
Was this helpful to you?
Your request has been submitted
You have been successfully added to the TaxAct Do Not Sell list.