A real estate professional is preparing a depreciation schedule to complete his tax return

A real estate professional is preparing a depreciation schedule to complete his tax return. He owns a
residential property that he rents. The list of depreciable assets are shown below.
Initial
Acquisition
Basis/Cost
Date

Asset
Residential Real Estate Asset

$125,000

2/1/2000

$5,000

1/15/2013

$200

6/15/2012

$50

7/1/2013

Carpet

$1,000

8/2/2010

Fences

$2,000

2/1/2000

Furniture

Refrigerator

Microwave

Requirements:
Analyze the information above. Modify the attached spreadsheet to address each of the numbered
requirements. In the appropriate areas:
1.
2.
3.

List the Asset Class.
Calculate the depreciation amount for the current tax year and list the table used.
Cite the information source from which you answered #1 and #2 (IRS publication,
textbook, website, etc.).

Clearly identify the requirement being addressed. Show all calculations within the cells of the
spreadsheet. This means that you must use formulas and links so that your thought process can be
examined. Make good use of comments to convey your thought process as well. No hard coding of
solutions is permitted.
Note: If IRS Publication 527 is used, apply the MACRS GDS system instead of the MACRS ADS system.