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Table 6A-1

Luxury Automobile Depreciation

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Kelly is a self-employed tax attorney whose practice primarily involves tax planning. During the year, she attended a three-day seminar regarding new changes to the tax law. She incurred the following expenses: Required: a. How much can Kelly deduct? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Kelly believes that obtaining a CPA license would improve her skills as a tax attorney. She enrolls as a part-time student at a local college to take CPA review courses. During the current year, she spends $1,500 for tuition and $300 for books. How much of these expenses can Kelly deduct? Answer is complete but not entirely correct. On February 4, 2022, Jackie purchased and placed in service a car she purchased for $21,500. The car was used exclusively for her business. (Use Table 6A-1 and Luxury Automobile Depreciation) Required: Compute Jackie's cost recovery deduction in 2022 assuming no $179 expense but the bonus was taken. Jackie's cost recovery deduction On June 10, 2022, Huron purchased equipment (seven-year class property) for $75,000. (Use Table 6A-1) Required: Determine Huron's cost recovery deduction for computing 2022 taxable income. Assume that Huron does not make the $179 and bonus elections. Note: Round your answer to 2 decimal places. Cost recovery deduction

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