1. Like financial accounting, most acquired business property must be capitalized for tax purposes 2. An asset's capitalized cost basis includes only the actual purchase price; expenses to purchase, prepare the asset for use, and begin using the whereas asset are immediately expensed. 3. Depreciation is currently computed under the Modified Accelerated Cost Recovery System (MACRS). 4. Real property is always depreciated using the straight-line method. 5. Significant limits are placed on the depreciation of luxury automobiles. 6. The amount realized is the sale proceeds less the adjusted basis. 7. The adjusted basis is the cost basis less cost recovery deductions. 8. The gain or loss realized on the sale of an asset is the amount realized less the adjusted basis 9. The gain or loss realized on the sale of an asset is always recognized for tax purposes 10. Assets held for investment and personal use assets are examples of capital assets. 11. $1231 assets include all assets used in a trade or business. 12. A parcel of land is always a capital asset