Which of the following statements is incorrect concerning rental properties?
A) Generally,rental activities are reported on Schedule
B) All ordinary expenses related to the rental activity are deductible.
C) Capital improvements may be deducted as expense in the year the improvements are made.
D) Travel expenses related to the rental activity are calculated using the standard mileage rate.

Question

Quizplus · Accepted Answer

Capital improvements are not deducted as expenses in the year they are made. Instead, they are added to the basis of the property and may be depreciated over time.

Which of the Following Statements Is Incorrect Concerning Rental Properties