Which, If Any, of the Following Transactions Will Decrease a Taxing

question 47

Multiple Choice

Which, if any, of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

• A)A tax holiday is granted to an out-of-state business that is searching for a new factory site.
• B)An abandoned church is converted to a restaurant.
• C)A public school is razed and turned into a city park.
• D)A local university sells a dormitory that will be converted for use as an apartment building.
• E)None of these.

---

Definitions:

Net Losses

Refers to the situation where a company's expenses exceed its revenues for a given period, resulting in a negative profit.

Long-Term Losses

Financial losses on investments held for more than a year before being sold at a lower price than the purchase cost.

Donor's Adjusted Basis

The original value of an asset for tax purposes, adjusted for factors such as depreciation or improvements, used to determine gain or loss on a gift's transfer.

Donee

The recipient of a gift or donation, often referenced in the context of tax deductions for charitable contributions.