Peter is assessed $630 for street improvements in front of his house. Which of the following statements is correct?
A) Peter must deduct the assessment as a tax.
B) Peter must reduce the property basis by $630.
C) Peter must increase the property basis by $630.
D) Peter can elect to deduct the $630 currently or increase the basis in the property.
C) Peter must increase the property basis by $630.
Tax law requires capitalization of assessments as part of the property's adjusted basis.
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