Hans, a calendar-year taxpayer, purchased a new passenger automobile on August 17, 2019, for $50,000,...
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Hans, a calendar-year taxpayer, purchased a new passenger automobile on August 17, 2019, for $50,000, and placed it in service immediately. The automobile was the only depreciable asset he placed in service that year. He did not elect IRC 179 expensing or to take additional first-year (bonus) depreciation. During the year the car was used 40% for business and 40% for production of income. Automobiles are 5-year property. Determine his cost recovery deduction for the car for 2019.
a. $4,000
b. $10,000
c. $8,080
d. $4,040
e. $3,160
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