Payments by a Cash Basis Taxpayer of Capital Expenditures

question 48

Multiple Choice

Payments by a cash basis taxpayer of capital expenditures:

• A) Must be expensed at the time of payment.
• B) Must be expensed by the end of the first year after the asset is acquired.
• C) Must be deducted over the actual or statutory life of the asset.
• D) Can be deducted in the year the taxpayer chooses.
• E) None of the above.

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Definitions:

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