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Certain Costs Associated with a Property's Upkeep as Well as the Manner

Question 29

Multiple Choice

Certain costs associated with a property's upkeep as well as the manner in which it was financed can be depreciated and therefore have a beneficial impact on the tax paid by the investor in a particular year. Which of the following cash outflows is deductible for income tax purposes in the year in which they are made?


A) Operating expenses
B) Capital expenditures
C) Up-front financing costs
D) Repayment of principal

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