During 2019 and 2020,Danny Pays Property Taxes of $3,500 Each

question 51

Multiple Choice

During 2019 and 2020,Danny pays property taxes of $3,500 each year on a piece of land.During 2019,the land is vacant and unproductive.In 2020,Danny uses the land as a parking lot and generates $16,000 in income.Which of the following is true regarding the property taxes?

• A)Capitalize $3,500 each year.
• B)Deduct $3,500 each year.
• C)Capitalize $3,500 in 2019 and deduct $3,500 in 2020.
• D)Either B or C is acceptable.