FILL IN THE BLANK. if an asset's business use drops to 50% or below, the business must _ any excess accelerated depreciation over the _ ___ depreciation for all prior years

Bonus depreciation is regarded as a depreciation deduction, and as such, the full deduction may be subject to recapture as ordinary income under IRC 1245 when section 1245 property is sold for a profit.

The depreciation or expensing deductions above straight-line will be subject to recapture if a taxpayer's business use falls to 50% or less at any point after bonus, section 179, or MACRS depreciation has been claimed. The self-employment tax will apply to this amount as regular income.

The method for calculating MACRS depreciation.

By dividing one depreciation period by the asset's remaining life, LN calculates the % for a year when utilizing MACRS straight line. Using this percentage combined with the averaging convention, LN then uses this result to calculate the depreciation amount for that year.

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FILL IN THE BLANK. if an asset's business use drops to 50% or below, the business must ___ any excess accelerated depreciation over the ___ ___ depreciation for all prior years

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Does recapture apply to MACRS depreciation?

The method for calculating MACRS depreciation.

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FILL IN THE BLANK. if an asset's business use drops to 50% or below, the business must _ any excess accelerated depreciation over the _ ___ depreciation for all prior years