Discuss what circumstances must be met for personal property taxes to be deductible

What will be an ideal response?


Two basic tests must be met in order for a personal property tax to be deductible. The first is that the tax must be an ad valorem tax on personal property. This means a tax is imposed based on the value of the property. The second requirement is that the tax must be imposed on an annual basis, even if the tax is not paid annually.

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Answer the following statement true (T) or false (F)

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