Peter Is Assessed $630 for Street Improvements in Front of His

Multiple Choice

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.