Proposed Depreciation And Investment Tax Credit Revisions Present Law And Description Of Proposals

Author : U. S. Joint Committee on Taxation
Publisher : Forgotten Books
ISBN 13 : 9781333750961
Total Pages : 38 pages
Book Rating : 4.7/5 (59 download)

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Download or read book Analysis of Proposals for Depreciation and Investment Tax Credit Revisions, Vol. 1 written by U. S. Joint Committee on Taxation and published by Forgotten Books. This book was released on 2016-09-26 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Analysis of Proposals for Depreciation and Investment Tax Credit Revisions, Vol. 1: Overview; Prepared for the Use of the Committee on Ways and Means, U. S. House of Representatives, by the Staff of the Joint Committee on Taxation; May 6, 1981 In an income tax, it is necessary to make provision for deducting (or recovering) capital costs; that is, costs which are incurred in one year but which help to generate income in future years. Present law contains a variety of methods of capital cost recovery for different kinds of assets. The most important of these is depreciation, in which the deduction for capital costs is spread over what is intended to be the useful life of the asset in order to match income with expenses incurred to produce the income. Under amortization, the write-off occurs over some fixed, arbitrary period of time that is not related to the asset's useful life. Other methods of capital cost recovery include cost depletion, which is used for many costs of acquiring natural resources, and expensing, which is used for intangible drilling costs and certain research and development costs. A provision of present law which performs a similar function as capital cost recovery is the invest ment tax credit. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.