Windfall Deductions from Changing Depreciation
Francine J. Lipman
University of Nevada, Las Vegas - William S. Boyd School of Law
James E. Williamson
San Diego State University - College of Business Administration
Journal of Property Management, Vol. 61, No. 74, September 1996
A revenue procedure issued by the IRS may enable real estate managers and owners who have not fully enjoyed the depreciation benefits allowed by tax laws to avail of windfall tax deductions. Revenue Procedure 96-31 allows taxpayers who have made claims lower than the allowable depreciation in previous tax years to automatically change their accounting method for depreciation without user fees. The procedure not only authorizes an automatic change from an impermissible depreciation method or life to a permissible method or life, but also grants the taxpayer the right to subtract the full amount of the difference between the depreciation originally claimed and the amount allowed under an impermissible depreciation method or life.
Number of Pages in PDF File: 2
Keywords: Revenue Procedure 96-31
JEL Classification: K34, H24, H25Accepted Paper Series
Date posted: May 28, 2008
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