Question

On August 11, 2019, Nancy acquired and placed into service residential rental property, which cost $430,000; the cost of the land has been excluded. Nancy annually elects the maximum allowed Sec. 179 deduction. The total depreciation for the year is (rounded)

Answer 1

$5,865.20

Explanation:

The computation of the total depreciation for the year is shown below:

= Cost of service residential rental property exuding land × depreciation rate for the year

= $430,000 × 1.364%

= $5,865.20

By multiplying the Cost of service residential rental property exuding land with the depreciation rate for the year we can get the total depreciation for the year and the same is applied

Refer to the mid month convention depreciation table

Moreover, in the case of the residential rental property, the section 179 deduction is not applicable