Joe Purchased a New Five-Year Class Asset on June 1

question 28

Essay

Joe purchased a new five-year class asset on June 1, 2017. The asset is listed property (not an automobile). It was used 55% for business and 45% for the production of income. The asset cost $1,000,000. Joe made the § 179 election. Joe's taxable income would not create a limitation for purposes of the § 179 deduction. Joe does not take additional first-year depreciation. Determine Joe's total cost recovery (including the § 179 deduction) for the year.

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Definitions:

William Julius Wilson

An influential American sociologist noted for his work on urban sociology, race, and class in the United States.

Economic Factors

Elements that influence a country's economy, including inflation rates, employment levels, gross domestic product, and consumer spending.

Michael Omi

A sociologist best known for co-developing the theory of racial formation in the United States, which examines how social, economic, and political forces determine the content and importance of racial categories.

Howard Winant

An American sociologist known for his work on race and racism, particularly in the context of global and American society.