Discuss the Criteria Used to Determine Whether a Building Is

question 173

Essay

Discuss the criteria used to determine whether a building is residential or nonresidential realty.Also explain the tax consequences resulting from this determination if the property is placed in service in 2013.

---

Definitions:

Reserve Ratio

The reserve ratio is the portion of depositors' balances that banks must have on hand as cash, determined by central banks to ensure stability and liquidity.

Reserves

Funds or material set aside or saved for future use, often referring to cash or other assets held by a bank or a company.

Fed

The Federal Reserve System, the United States' central bank, holds responsibility for implementing monetary policy.

Money Supply

The entire aggregate of monetary assets available at a certain period in an economy.