16. A taxpayers adjusted tax basis in a property is:

a. its fair market value less the balance of outstanding mortgages.

b. the amount of the owners equity in the property.

c. primarily an accounting, rather than a tax concept.

d. none of the above.

17. An important aspect of the depreciation allowance is that:

a. it is an out of pocket cost of doing business, reducing both cash flow and taxable income.

b. the tax shelter it generates can never exceed the income from the property.

c. both (a) and (b) are true.

d. none of the above is true.

18. When a property is located in a registered historic district:

a. it is automatically considered a certified historic structure.

b. it is not necessarily considered a certified historic structure.

c. it is up to the property owner to decide if the property is of historic significance.

d. none of the above.

19. Prepaid mortgage interest on commercial property:

a. is deductible in the same pattern as construction-period interest.

b. with certain restrictions, is deductible in the year paid.

c. can never be deducted.

d. none of the above are true.