Income Taxes Flashcards
1
Q
A casualty loss may be deducted by a property owner
A
if it is not covered by insurance.
2
Q
Expenses of operation that can be deducted on a business or investment property are
A
repairs
insurance
management fees
3
Q
Depreciation allows an owner of a business or investment property to deduct the cost of acquiring the property
A
over the life of the property
4
Q
Depreciation is based on
A
improvements to the land ONLY
5
Q
Depreciation is based on a value which is equal to the original cost of a property less
A
value of the land
6
Q
The adjusted basis equals the purchase price plus cost of acquisition plus cost of capital improvements
A
The amount realized for determining capital gains tax on real property is the selling price less the COSTS OF THE SALE.
