Taxpayer holds a rental property and derives rental income. The taxpayer makes the following asset purchases...

 

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Taxpayer holds a rental property and derives rental income. The taxpayer makes the following asset purchases in relation to the rental property. On 1 August 2020, taxpayer purchases and installs a new air conditioner, costing $990, which has a 5 year effective life On 1 March 2021, taxpayer purchases a new electric heater that is attached to the wall, at a cost of $250, which has a 5 year effective life. On 1 April 2021, the taxpayer repairs the wire door, replacing the wire with new netting $100 What is the maximum decline in value that can be claimed as a deduction to the taxpayer? Select one: O a. $419 O b. $1,240 Oc. $436 Od. $1,340 Taxpayer holds a rental property and derives rental income. The taxpayer makes the following asset purchases in relation to the rental property. On 1 August 2020, taxpayer purchases and installs a new air conditioner, costing $990, which has a 5 year effective life On 1 March 2021, taxpayer purchases a new electric heater that is attached to the wall, at a cost of $250, which has a 5 year effective life. On 1 April 2021, the taxpayer repairs the wire door, replacing the wire with new netting $100 What is the maximum decline in value that can be claimed as a deduction to the taxpayer? Select one: O a. $419 O b. $1,240 Oc. $436 Od. $1,340

Answer rating: 100% (QA)

Answer The correct option is B Maximum decline in value th... View the full answer