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Manal Elkhoshkhany, Bachelor's Degree
Category: Single Problem
Satisfied Customers: 9866
Experience:  Finished my BA degree with a GPA of 4.0.
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# John purchased three new front loaders on January 15, 2014

### Customer Question

John purchased three new front loaders on January 15, 2014 for \$550,000 and elects section 179 expensing on the front loaders. He also purchased a dump truck on January 18, 2014 for \$80,000. He elects to take additional first year depreciation on both
the loaders and dump truck. What is John’s total cost recovery deduction for the year?
Submitted: 1 year ago.
Category: Single Problem
Expert:  Manal Elkhoshkhany replied 1 year ago.
Hello
Please advise your deadline as well as the name of the book you are using: Title, author's name and edition. I need the name of the book and the edition so that I apply the correct rates as used by your book
Thank you
Customer: replied 1 year ago.
The deadline is immediately. The name of the book is Individual Income taxes 2015 by Hoffman Smith.
Expert:  Manal Elkhoshkhany replied 1 year ago.
Thank you
Working on the questions
Expert:  Manal Elkhoshkhany replied 1 year ago.
https://app.box.com/s/ub5ldj81oupbl0hfh82fjq0mvjvoweyt
If you have any questions, please do not hesitate to ask; if all is clear, please rate the service
Thank you
Customer: replied 1 year ago.
Thanks! I'm still confused on how you got 500,000 for the section 179 expense? It adds up to \$530,000 instead of \$575,000 on the first step!
Customer: replied 1 year ago.
These are five year assets? Is that correct?
Expert:  Manal Elkhoshkhany replied 1 year ago.
Hi
You are correct about the \$530,000 (Don't know how I calculated that as \$575,000!!. Let me double check about the classification again cause I think they are regarded as equipment (which would be 7 years), but let me just double check
Thank you
Expert:  Manal Elkhoshkhany replied 1 year ago.
No, 5 years is correct because they are considered "Light and Heavy General Purpose Trucks"
Did you want me to upload a corrected version (with the \$530,000) or can you correct that on your file?
Thank you and I apologize for that mistake
Customer: replied 1 year ago.
Customer: replied 1 year ago.
Why would the section 179 expense be \$500,000 and not \$550,000?
Expert:  Manal Elkhoshkhany replied 1 year ago.
The limitation is \$500,000