R2 - Property Taxation

Question 1

Section 179 Deduction

Answer 1

Cannot be taken if there is a LOSS

Question 2

Real Property

Answer 2

Is depreciated using the mid-month convention

Question 3

Residential Real Estate

Answer 3

Is depreciated over a 27.5 year life
Using Straight Line

Question 4

Realized Loss

Answer 4

= Sale Proceeds - Cost Basis

Question 5

Can combine Section 179, MACRS and Bonus Depreciation

Answer 5

BUT After taking the Section 179 deduction

Any remaining basis of the asset can be depreciated using the other methods

Cannot deduct the same portion of the asset’s cost under both Section 179 & MACRS

Question 6

Covered Opinion

Answer 6

Includes any written or electronic advice concerning transactions specified by the IRS as listed transactions