What is the tentative amount of gilberts overall deduction

Reference no: EM131989183

Problem

TAX ACCOUNTING QUESTION

Gilbert is the proprietor of a small business. In 2016, the business income, before consideration of any cost recovery or $ 179 deduction, is $3,000,000. Gilbert spends $2,500,000 on new seven-year class assets and elects to take the $ 179 deduction on them. He elects not to take additional first-year depreciation. Gilbert's cost recovery deduction for 2016, except for the cost recovery with respect to the new seven-year assets, is $780,000.

If an amount is zero, enter "0". If required, round your intermediate computations and final answers to the nearest dollar.

a. What is the tentative amount of Gilbert's overall $ 179 deduction for the seven-year class assets before any income limitation?

b. Gilbert's cost recovery amount (excluding any $ 179 deduction) for the seven-year class assets is $.

c. The total amount of Gilbert's $ 179 deduction for the seven-year class assets after any income limitation is $.

d. Gilbert's total cost recovery depreciation deduction (including any $ 179 deduction) is $.

e. What is the amount of any $ 179 carryforward?

Reference no: EM131989183

Questions Cloud

Discuss rationale for maximum wage base for social security : Discuss the rationale for a maximum wage base for Social Security and no maximum for Medicare. Should there be a maximum base for Social Security and Medicare?

What is the overall outcome of the project : CP5631 Assignment - Networking Case Study - What is the overall outcome of the project? How will the output of the project solve the problem?

Developing an Audit Program for a Alto metal Company : HA3032 Audit Assignment - Detail Project Tasks: Developing an Audit Program for a selected listed Company Company - Alto metal Company ASX: Ame is the topic

Personnel reductions within the organizations : Will the progressive integration of communications, IT, data and physical elements result in personnel reductions within the organizations that take advantage

What is the tentative amount of gilberts overall deduction : What is the tentative amount of Gilbert's overall $ 179 deduction for the seven-year class assets before any income limitation?

How should the preparer advise the client to report : If not, how should the preparer advise the client to report an item attributable to a tax shelter on the return and why?

What are the rules in your state for qtps : Research and discuss the many different types of educational accounts/deductions available to taxpayers. What are the rules in your state for QTPs?

Discuss australian health priorities for chronic disease : HLTENN012: Implement and monitor care for a person with chronic health problems.Discuss Australian health priorities for chronic disease.

Analyze the responses of your interview subject : Conduct an audio interview someone who has first-hand experience with the sport you analyzed. The interview must be at least 10 minutes in length.

User Account

All Pages