EBK CONCEPTS IN FEDERAL TAXATION 2019
26th Edition
ISBN: 9781337671774
Author: Murphy
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 9, Problem 1DQ
To determine
Explain the effect that property’s use have on the cost recovery allowable on the property.
Expert Solution & Answer
Explanation of Solution
Deduction that can be on property depends upon the use of property. The current period expenditure that is incurred for the purpose of business or trade can be used as a deduction. In case of property having finite life, then the cost can be recovered over the useful life of the asset through deduction by depreciation, depletion or amortization. The recovery on personal property can be allowed only at property's disposition. When the disposition results in a loss, then the capital recovery can made to the extent of realized amount on disposition.
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Chapter 9 Solutions
EBK CONCEPTS IN FEDERAL TAXATION 2019
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