Question

14. Property that is classified as personalty may be depreciated. a. True b. False 15 The...

14. Property that is classified as personalty may be depreciated.
a. True
b. False
15 The basis of cost recovery property must be reduced by at least the cost recovery allowable.
a. True
b. False
16.The cost recovery basis for property converted from personal use to business use may be the fair
market value of the property at the time of the conversion.
a. True
b. False
Business   Accounting   
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Answer #1

14. True, Property which is classified as personalty may be depreciated.

15. True, basis of cost recovery property must be reduced by the cost recovery allowed but not less than the cost recovery allowable

16. True, it would occur for the loss basis if the FMV (Fair Market Value) is less than the adjusted basis of the property. When a property is converted from personal use to business use or held for the production of income property basis for depreciation is lesser of the adjusted basis or FMV on the date of conversion.

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