What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices 1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount 3) None of these are correct 4) Nothing. Thee IRS does not have any clear rules on this specific issue 5) This makes sense, as it avoids a costly tax
What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices 1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount 3) None of these are correct 4) Nothing. Thee IRS does not have any clear rules on this specific issue 5) This makes sense, as it avoids a costly tax
Chapter2: Working With The Tax Law
Section: Chapter Questions
Problem 4RP
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Question
What would happen if an investor, did not take
Group of answer choices
1) The IRS will sue you for tax evasion
2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount
3) None of these are correct
4) Nothing. Thee IRS does not have any clear rules on this specific issue
5) This makes sense, as it avoids a costly tax
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