Ask Question
BusinessBusiness
6 May, 17:25

According to income tax law, John could adjust the cost basis of his personal residence for which of the following items? A. Interest on the home loanB. Cost of adding a new garageC. DepreciationD. Cost of replacing the water heater

+5
Answers (1)
  1. 6 May, 19:02
    0
    The correct option is B

    Explanation:

    According to income tax laws, an individual will pay mess capital gains tax when his basis in an asset is higher. From the example, John has a personal residence and to increase his basis, he needs to think of what to add to the residence such that the selling price would increase and thus capital gain tax will reduce. From the option, the best and likely thing that would increase the basis of his asset (the house) and lead to an increase selling price is adding a new garage.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “According to income tax law, John could adjust the cost basis of his personal residence for which of the following items? A. Interest on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statement (s) is (are) true? a. The real rate of interest is determined by the supply and demand for funds. b. The real rate of interest is determined by the expected rate of inflation. c.
Answers (1)
Which of the following would be the most desirable wording to use on a résumé? Created a first-place science fair project. I won first place in the science fair. I created a first place science fair project. Was the winner of the science fair.
Answers (1)
uring a recession, which of the following is true? A. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities. B.
Answers (1)
Which of the following can an interviewer legally ask you about at a job interview
Answers (1)
A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons.
Answers (1)
New Questions in Business
Jim is a manager of a restaurant. He is very concerned with efficiency and goal accomplishment as well as very intent on making employees happy through lots of participation and open-mindedness.
Answers (1)
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $90,900 and expected direct labor hours of 10,100 for the current fiscal year.
Answers (1)
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000.
Answers (1)
MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made.
Answers (1)
Bill signs a check payable to the order of City Bank, filling in the blanks for the amount with the figures "$100" and "One thousand and 00/100dollars." This check is payable in the amount of a. $0. b. $100. c. $1,000. d. $1,100.
Answers (1)
Home » Business » According to income tax law, John could adjust the cost basis of his personal residence for which of the following items? A. Interest on the home loanB. Cost of adding a new garageC. DepreciationD. Cost of replacing the water heater
Sign Up Forgot Password?