Discussion Question $1-3($LO$.1,4)$

Marvin is the executor and sole heir of his aunt's estate. The estate Includes her furnished home, which Marvin is considering converting to rental property to generate additional cash flow.

For each item below, select either "Yes" or $"$No$"$ to identify those which could be a tax problem for Marvin.

a$.$ Any rent Marvin receives from the property is taxed as income. b$.$

Besides the real estate taxes, personal property taxes could be imposed on the furnishings.

C$.$

Marvin can expect an increase in the ad valorem property taxes levied by the local taxing authorities due to the commercial use of the property.

d$.$

Since the property was inherited, Marvin may not convert it to rental property.