2024 Basis and Depreciation

Question 1

a taxpayers buy property, the amount they pay is generally their..

Answer 1

basis

Question 2

basis

Answer 2

is the amount paid for the property

Question 3

the basis of the property may be different based on…

Answer 3

the cost of the item is changed, or if the taxpayer recieved the property in some way other than buying such as from an inheritance

Question 4

basis is used to determine certain…

Answer 4

tax deductions the taxpayer can take for the property

Question 5

Taxpayer who use property in a trade or busniess or for investment purposes, can recover the basis of the property by..

Answer 5

depreciation

Question 6

Depreciation

Answer 6

Allows taxpayers to recover a portion of their basis each year over a period of time through tax deductions

Question 7

A person can accumulate many things, which are called…

Answer 7

assets (the acquisition use and disposition of assets can impact a person’s tax return)