CAF-2 · Chapter 8 · Question 14 of 15
If a depreciable asset is disposed of during a tax year, what is the rule regarding the normal depreciation deduction for that specific year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) D) No depreciation deduction is allowed in the year of disposal.
Explanation
Section 22 strictly states that where a person disposes of a depreciable asset in any tax year, no depreciation deduction shall be allowed for that year.
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