Business Finance Homework Help

–A calendar year taxpayer sells a warehouse used in its trade/business for $100,000 payable in January of the following year, plus interest. The taxpayer’s basis in the warehouse was $120,000. Since at least one payment is received after the end of the tax year, the taxpayer can use the installment method.

True or False

–Under the MACRS system, depreciation rates for real property must always use the mid-month convention in the year of acquisition.

True or False