If an owner of an income property added a swimming pool to his property, how would this be treated for federal income tax purposes?
A. Added to the cost basis only.
B. Taken the first year as an expense.
C. It would have no effect on the income tax.
D. Depreciated over the life of the improvement.
Major or capital improvements added to an income, trade, or business property are to be depreciated over the life of the improvement.
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Educating realtors for 20 years
Exam Details
This exam covers the national portion of the Sales Agent Exam.
Taken: 4,220 times
Added: 8/18/2008
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Audience: Professional

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Stanleyg says:
My God, now I am nervous, my course I took had 40 percent of stuff unheard in my class.
Posted: 10/22/2009