On May 8 2016 Holly purchased a residential apartment buildi

On May 8, 2016, Holly purchased a residential apartment building. The cost basis assigned to the building is $800,000. Holly also owns another residential apartment building that she purchased on October 15, 2016, with a cost basis of $500,000 Click here to access the depreclation tables. a. Calculate Holly\'s total depreciation deduction for the apartments for 2016 using MACRS. Feedback b. Calculate Holly\'s total depreciation deduction for the apartments for 2017 using MACRS

Solution

Answer

a ) calculation the holy total deduction for the apartment for 2016 using MARCS

purchase date may 8 , 2016

MARCS deprecation for this building 2016 = 2.273 % * 800000

= 18184

purchase date october 15 , 2016

MACRS deprecation for this building 2016 = 0.758 % * 500000

= 3790

total depreciation deduction for 2016 = 18184 + 3790

= 21974

b ) calculation holy total depreciation deduction for the apartments for 2017 MACRS

Depreciation for 2017 = ( 3.636 % * 800000 ) + (3.636 % * 500000 )

= (29088 ) + ( 18180 )

= 47268