What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices 1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount 3) None of these are correct 4) Nothing. Thee IRS does not have any clear rules on this specific issue 5) This makes sense, as it avoids a costly tax

What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices 1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount 3) None of these are correct 4) Nothing. Thee IRS does not have any clear rules on this specific issue 5) This makes sense, as it avoids a costly tax

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 63IIP

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