R3 - Property Taxation Flashcards
What is the Basis for Purchased Property?
Cost + Capital Improvements
What is real property?
Land and Buildings
What is personal property?
Machinery and Equipment
What is the holding period for purchased property?
The Purchase datew
What reduces the basis for purchased property?
Accumulated Depreciation
What is the general basis for gifted property?
Donors NBV
What increases the general basis for gifted property?
Taxes Paid
What is the exception for gifted property basis?
When FMV < Cost Basis
Holding Period for gifted property
Usually donors holding period
Inherited Property Basis General Rule:
FMV at date of death
Holding period for inherited property
automatically considered long term property
Repairs and Maintenance are:
expensed
Improvements are:
Capitalized
Materials and Supplies are:
Expensed
What are Capital Assets?
Property held by taxpayer
