True or false With one liner explanation 1. Scheduled C is used only when an individual is an employee of a company. 2. For expense to be considered deductible in the business, they must be ordinary, necessary and reasonable in the taxpayer’s trade or business. 3. A warehouse would be depreciated over ten years for MACRS tax purposes. 4. Rental property is depreciated using double-decline balance method over 40 years. 5. Ordinary income is an expenses that is customary or usual for the rental property activity. 6.All expenses related to rental property are deductible in the current year, including capital improvements.
True or false With one liner explanation 1. Scheduled C is used only when an individual is an employee of a company. 2. For expense to be considered deductible in the business, they must be ordinary, necessary and reasonable in the taxpayer’s trade or business. 3. A warehouse would be depreciated over ten years for MACRS tax purposes. 4. Rental property is depreciated using double-decline balance method over 40 years. 5. Ordinary income is an expenses that is customary or usual for the rental property activity. 6.All expenses related to rental property are deductible in the current year, including capital improvements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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True or false With one liner explanation
1. Scheduled C is used only when an individual is an employee of a company.
2. For expense to be considered deductible in the business, they must be ordinary, necessary and reasonable in the taxpayer’s trade or business.
3. A warehouse would be
4. Rental property is depreciated using double-decline balance method over 40 years.
5. Ordinary income is an expenses that is customary or usual for the rental property activity.
6.All expenses related to rental property are deductible in the current year, including capital improvements.
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