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Dear Accountant, Recently I opened a tanning salon business. To save money, I aim trying to complete my tax return on my own this year. I think I understand how to report all the receipts and payments properly using a schedule C$.$ The only issue I$\text{'}$m having is with this thing called, Cost Recovery. I was hoping that you could explain it more to me$.$

I rent the space I use for the tanning salon. However, I purchased $10$ tanning beds, $3$ computers and printers, and various fumiture for the salon.

Iheard that I may be able to deduct all these items I bought, but then I saw I may have to use cost recovery. I also saw something about bonus depreciation. I need some clarification on what my options are available to deduct these items I purchased this year.

Thanks

Tanning LaLa Land

Requirement:

Create a tax research memo to provide the answer to Single and upset's tax dilemma. You must follow the steps for an Intemal Research memo as discussed in Chapter $2$ and example on page $2-20.$ Remember that there are steps and each must be identified and labeled within your memo.

Subject

Facts

Issue

Authorities

Conclusion

Analysis

You must complete in a $.$txt or doc document extension and upload into the Tax Research Assignment #$3$ dropbox in the Tax Research Module in Canvas by the required due date. Late submission are penalized $5$ points per day of part of submitted late.

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