Depreciable Property, for Tax deductions must have which of the following charac
ID: 1223860 • Letter: D
Question
Depreciable Property, for Tax deductions must have which of the following characteristics:
It wears out, decays, gets used up, becomes obsolete, or loses value from natural causes.
It must be used in business or held for production of income.
All of the these choices given
It must have a definite service life, and that life must be longer than 1 year.
A.It wears out, decays, gets used up, becomes obsolete, or loses value from natural causes.
B.It must be used in business or held for production of income.
C.All of the these choices given
D.It must have a definite service life, and that life must be longer than 1 year.
Explanation / Answer
Depreciable Property, for Tax deductions must have all of the these choices given as their characteristics.
This is because depreciable properties are those which have depriciation cost and it has a service life and that life must be longer than 1 year because we calculate depriciation of an property on yearly basis.
Depreciable property can losses its value due to natural causes, because all the tangible property losses its value due to natural causes.
A property has a depreciation cost if it is used continuously. And as we know business used machins for production, so this properties are used for business purpose or income purpose.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.