Casualty losses

Question 1

casualty losses are exception for

Answer 1

business taxpayers 165

Question 2

under casualty losses

Answer 2

immediately deduct even if you dont repair,

Question 3

tradeoff cor casualty loss

Answer 3

have to reduce bases by same amount, once repaired, bases goes back up.

Question 4

on casualty losses, cant expense when repaired because

Answer 4

already took immediate deduction for loss

Question 5

casualty loss applies only when

Answer 5

not reimbursed by insuracne or otherwise

Question 6

for malunfctions

Answer 6

dont get dudciton, but dont have to reduce bases

Question 7

appropriate unit of property

Answer 7

1. 263 a 3 e ii i. All components functionally interdependent in placement of service.
2. Probably 2 (sparkplugs)
   ii. Components dependent on placement of service of another component.
3. Probably 1- wall of building.
   iii. Buildings treated as single unit

v. Sometimes differently for AC stuff.
1. Appropriate comparison for pre and post fix
a. 1.263 3 e 1.

Question 8

building refreshment

Answer 8

not a cap expenditure, can deduct as repair

Question 9

plan of rehab

Answer 9

is a cap expenditure 1.362 a 3 g 1

Question 10

must capitalize as betterment any cost to ameloriate a defect prior to acquisition of property regardless of

Answer 10

whether they knew of it. 1.263 a-3 j i

Question 11

essentially if issue existed at time of purchase

Answer 11

you must capitalize repair