Question

Which of the following depreciation provisions are available to listed property that is used more than 50% for business purposes?

A. bonus depreciation on the business-use percentage of the cost
B. Section 179 expensing on the business-use percentage of the cost
C. MARCS depreciation on one-half of the total cost
D. Section 179 expensing on the total cost
E. MACRS depreciation on the business-use percentage of the cost

Answer 1

The available depreciation provisions for listed property used more than 50% for business purposes are bonus depreciation and MACRS depreciation.

Step-by-step explanation:

The correct answer is A. bonus depreciation on the business-use percentage of the cost and E. MACRS depreciation on the business-use percentage of the cost.

Listed property that is used more than 50% for business purposes can take advantage of bonus depreciation and MACRS depreciation. Bonus depreciation allows businesses to deduct a higher percentage of the cost of the property in the year it is placed in service. MACRS (Modified Accelerated Cost Recovery System) is a system that allows businesses to recover the costs of certain assets through depreciation deductions over a specified period of time. Both of these depreciation provisions are available to listed property used predominantly for business purposes and are subject to specific rules and limitations.