Which of the following is NOT included when calculating the depreciable basis for real property?
A) Freight charges for item
B) Sales tax paid for item
C) Financing fees
D) Installation and testing fees

Question

Quizplus · Accepted Answer

Financing fees are not included in the depreciable basis for real property. The depreciable basis typically includes the purchase price, freight charges, sales tax, and costs directly associated with getting the asset ready for its intended use, such as installation and testing fees. Financing fees are considered financial expenses, not costs of acquiring or improving a property.

Which of the Following Is NOT Included When Calculating the Depreciable