Question

5) Which of the following items do not affect the property's basis? 1. Improvements 2. None...

5) Which of the following items do not affect the property's basis?

1.

Improvements

2.

None of the other responses.

3.

Depreciation

4.

Inflation

5.

Acquisition Costs

4) Passive losses can only be offset by:

1.

Can never be deducted

2.

Can be offset against Ordinary Income

3.

Can be offset against Passive income

4.

Can be offset against portfolio income

5.

Can be offset against Capital Gains

9) Bull, LLC, a calendar year taxpayer, purchased a residential building and land in Buffalo, NY for a total cost of $6,000,000 and allocated 20% of the cost to the land. Bull placed the building in service on January 3rd of its initial year of operations. Compute the depreciation expense for Bull with respect to the realty for the initial year of operations / the year the realty was purchased

1.

$167,272

2.

$123,076

3.

$218,181

4.

None of the other responses

5.

$174,545
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