During 2016 and 2017,Danny pays property taxes of $3,500 each year on a piece of land.During 2016,the land is vacant and unproductive.In 2017,Danny uses the land as a parking lot and generates $16,000 in income.Which of the following is true regarding the property taxes?
A) Capitalize $3,500 each year.
B) Deduct $3,500 each year.
C) Capitalize $3,500 in 2016 and deduct $3,500 in 2017.
D) Either B or C is acceptable.
Correct Answer:
Verified
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