Question: Indicate whether the following statements are True or False regarding the payment of others' expenses, personal expenditures, and capital expenditures. a . To be deductible,

Indicate whether the following statements are "True" or "False" regarding the payment of others' expenses, personal expenditures, and capital expenditures.

.

To be deductible, an expense must be incurred for the taxpayer's benefit or arise from the taxpayer's obligation.

TrueFalseTrue

.

When an expenditure is for a tangible asset that has an ascertainable life, it is capitalized and may be deducted as depreciation

(

or cost recovery

)

over its depreciable life.

TrueFalseTrue

.

The Code specifically allows a deduction for "any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property."

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