Windfall Deductions from Changing Depreciation
Journal of Property Management, Vol. 61, No. 74, September 1996
2 Pages Posted: 28 May 2008
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.
Keywords: Revenue Procedure 96-31
JEL Classification: K34, H24, H25
Suggested Citation: Suggested Citation