Which of the following statements about tax depreciation is true ? (a) A taxpaye

Question

Which of the following statements about tax depreciation is true?

(a)         A taxpayer may use any depreciation rate that is consistent with generally accepted accounting practices.

(b)         Buildings may be depreciated using either 2% straight-line or 3% diminishing value methods.

(c)          Assets costing less than $1,000 may be fully written off in the year of purchase.

(d)         For a person to make a depreciation claim for an asset, the asset must be used, or be available for use, by the person.

Explanation / Answer

A) True.

b) False. as per U.S. GAAP, the straight line depreciation calculate on 39 years on the building which comes to 2.56% approx on SLM

c) true.

d) true.

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