The goodwill is amortized by the straight-line method
446 regulations, taxpayers generally amortized or deducted debt-issuance costs over the term of the debt instrument based on a straight-line method
. Under case law (e.g., Buddy Schoellkopf Products, Inc., 65 T.C.
New site improvements and tangible personal property can also qualify for federal bonus depreciation in the first year and use accelerated Modified Accelerated Cost Recovery System depreciation methods instead of the straight-line method
. Identifying a combined 30 percent of construction costs to their proper shorter recovery periods yields a depreciation expense of $19,682,000 over five years, an increase of $12,695,000 from the standard amount.
Qualified real property is allowed a quicker recovery period of 15 years using a straight-line method
, although before the PATH Act, this allowance was temporary and was periodically extended, having most recendy expired for property placed in service after Dec.
You can choose from both the straight-line method
or you can use an accelerated method.
(20) Under ADS, noncommercial aircraft have a six-year recovery period and are depreciated based on the straight-line method
while commercial aircraft have a 12-year recovery period and are also depreciated on the straight-line method
3 Tax advantages: degressive depreciation in 2014, mil.lei Additional annual depreciation (and deductible) in relation to the straight-line method
is 1.130.966 = > taxable profit (by deducting additional depreciation) is now: 8.959.372 = > and profit tax is: 1.433.499 Accordingly net profit is: 7.525.872 So we obtained an economy of profit tax in the first year of: (180.955) Source: own processing based on data provided by the company Table no.
The MACRS depreciation deduction is calculated by applying to the basis of the property either (1) a declining-balance method that switches to the straight-line method
at a time that maximizes the deduction or (2) a straight-line method
Cost recovery of depreciable real property basis would be under the straight-line method
Valuation theory distinguishes between the three methods or premises of such a recovery: the straight-line method
, Inwood method, and Hoskold method.
The straight-line method
would have made it difficult for the trustees to pay out the annuity stream over the trust's term.