A property was purchased for $2,400,000 with a land value of $400,000. The property was placed in service on March 15the, 1999. using MACRS, calculate depreciation at the end of one year

To calculate the depreciation at the end of one year using the Modified Accelerated Cost Recovery System (MACRS), you'll need to determine the applicable depreciation method, recovery period, and depreciation rate.

1. Determine the applicable depreciation method: MACRS offers different depreciation methods based on the property's class. For real estate, the most common method is the General Depreciation System (GDS).

2. Determine the recovery period: The applicable recovery period for a commercial real estate property is 39 years under the GDS.

3. Determine the depreciation rate: MACRS assigns specific depreciation rates based on the recovery period. You can refer to the IRS's depreciation tables to find the percentage for each year of the recovery period.

In this case, since the property was placed in service on March 15th, 1999, you would determine the depreciation for a one-year period ending on March 15th, 2000. Let's assume the depreciation rate for the first year is 2.5641% based on the IRS's depreciation tables for a 39-year recovery period.

Now, calculate the depreciation:

Total cost of the property: $2,400,000
Land value: $400,000
Depreciable basis (Total cost - Land value): $2,400,000 - $400,000 = $2,000,000

Depreciation for one year: Depreciable basis * Depreciation rate
Depreciation for one year: $2,000,000 * 2.5641% = $51,282

Therefore, the depreciation at the end of one year for this property, using MACRS, would be $51,282. Please note that this calculation assumes a constant depreciation rate throughout the recovery period and does not take into account any additional factors or adjustments that may be relevant in your specific situation.