Questions from Federal Taxation

Q: How does the allowable capital recovery period affect the potential return on

How does the allowable capital recovery period affect the potential return on the investment in an asset?

Q: Which two tests must be met to claim a periodic recovery deduction

Which two tests must be met to claim a periodic recovery deduction on a capital expenditure?

Q: What types of capital expenditures are not deductible over time (i

What types of capital expenditures are not deductible over time (i.e., their cost is recovered upon disposition of the asset)?

Q: What is the depreciable basis of an asset? What role does

What is the depreciable basis of an asset? What role does depreciable basis play in determining the annual cost recovery on a depreciable asset?

Q: What was the purpose of changing from the facts and circumstances depreciation

What was the purpose of changing from the facts and circumstances depreciation method to the ACRS method?

Q: What limitations are placed on the maximum amount to be expensed under

What limitations are placed on the maximum amount to be expensed under Section 179?

Q: Darcy borrowed $4,000 in 2014 from her employer to

Darcy borrowed $4,000 in 2014 from her employer to purchase a new computer. She repays $1,000 of the loan plus 6% interest on the unpaid balance in 2014, 2015, and 2016. After closing a big deal in 2...

Q: Which types of property are allowed a deduction for depletion?

Which types of property are allowed a deduction for depletion?

Q: In general, which types of property may be expensed under Section

In general, which types of property may be expensed under Section 179, and what is the current maximum limit on the deduction?

Q: Steem Advertising Corporation acquires 100 laptop computers in 2016 for its account

Steem Advertising Corporation acquires 100 laptop computers in 2016 for its account executives to use. Steem pays $300,000 for the computers and bundled software. You are the newly hired CPA and you...