Depreciation - Adjusted Cost Basis Calculation Example
Adjusted Cost Basis Calculation
Cost basis times business use percentage equals Business portion cost basis
Business portion cost basis less Section 179 deduction equals Adjusted cost basis
Adjusted cost basis times 30% Special bonus depreciation equals Special bonus depreciation amount
Adjusted cost basis less 30% bonus depreciation amount equals 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
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