Which of the following items is not a reduction to the basis of an asset?
A) Depreciation
B) Assessments for maintenance of sidewalks
C) Cash rebate from manufacturer
D) Casualty losses

Question

Quizplus · Accepted Answer

Assessments for the maintenance of sidewalks are ordinary expenses of operation. Depreciation is incorrect because basis must be reduced by depreciation. Cash rebates are a reduction in purchase price and casualty losses also reduce basis.

Which of the Following Items Is Not a Reduction to the Basis