Question

Mona inherits her mother's personal residence, which she converts to a furnished rent house. These changes should affect the amount of ad valorem property taxes levied on the properties.

a) true
b) flase

Answer 1

The answer is true.

Explanation:

An ad valorem tax is based on the assessed value of a property. These include property taxes on real estate, sales tax on consumer goods etc,

When you are earning rent from a property, then you have to pay some tax for it, that will surely affect the amount of ad valorem property taxes levied on the properties.

Therefore, the answer is true.