a taxpayer purchased a used automobile for 5000 this year he

a taxpayer purchased a used automobile for 5000 this year. he uses the car 40% for business. which systems of depreciastion must taxpayer use for the car.

ACRS

ALTERNATIVE STRAIGHT LINE

REGULAR MACRS

THE SECTION 179 EXPENSE DEDUCTION

Solution

as per rules macrs method should be use but only the bussiness portion of car can be depreciate and shown in return.
so in our case only 40% of total depr can be claimed. so the maximum depriciation we can claim is total 2000(i.e 5000*40%)