Task: Expensing and MACRS Depreciation.
Ted is in the rental real estate business. During 2009, Ted purchased and placed in service the following assets:
* Apartment building costing $300,000 (exclusive of $80,000 land): Placed in service on May 12 with a 27.5-year MACRS recovery period.
* Office furniture costing $215,000: Placed in service on April 10 with 7-year MACRS recovery period.
* Office equipment costing $110,000: Placed in service on November 1 with a 5-year MACRS recovery period.
Question 1: What are Ted's total depreciation deductions in 2009 and 2010 assuming he does not elect Sec. 179 expensing, and he elects out of bonus depreciation?
Question 2: What are Ted's total depreciation deductions in 2009 and 2010 assuming he elects Sec. 179 expensing in 2009 for $215,000 on the furniture and $35,000 on the equipment, but he elects out of bonus depreciation?
Question 3: What are Ted's total depreciation deductions in 2009 and 2010 assuming he elects Sec. 179 expensing in 2009 $140,000 on the furniture and $110,000 on the equipment, but he elects out of bonus depreciation?