Cost Recovery Period

Cost Recovery Period

The number of years it takes to fully depreciate a capital asset. This time period is based on classification of the depreciable life of an asset.

Cost Recovery Period

The amount of time that it takes for an asset to depreciate from its purchase price to its salvage value. In other words, the cost recovery period is an amount of time equal to the useful life of the asset. Very often, the IRS assigns a cost recovery period for different assets to head off disputes before they begin. See also: Modified Accelerated Cost Recovery System.
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As a general rule, each section of the mixed-use project operated as a rental or business (such as a hotel) operation is assigned a cost recovery period for purposes of claiming depreciation deductions based on the character of the mixed-use property component.
The agreement allows amending the pricing scheme every five years, with no cost recovery period for the foreign partner.
8 Rent, Cost Recovery Period and Upgrading Period of Major Brands by Vehicle Type
ATRA retroactively extends for two years, through 2013, a short seven-year cost recovery period for motorsports entertainment complexes under Sec.
While the upfront investment was considerable, solar technology has advanced to the point where the life expectancy of the solar system far exceeds the expected cost recovery period on the project.
Remaining in the legislative grave (resurrection is possible when Congress returns from its summer recess in September) with the R&D tax credit extension were other business tax enhancements, such as a provision that would have allowed corporations to receive a refund of a portion of their AMT credits if they invest during 2010 in capital equipment for use in the United States and another giving retailers a one-year extension (through 2010) of the special 15-year cost recovery period for certain leasehold improvements, restaurant buildings and improvements, and retail improvements.
Additionally, the measure would extend for one year, through 2010: the special 15-year cost recovery period for certain leasehold improvements, restaurant buildings and retail improvements; active financing exception, from Subpart F of the tax code; five-year depreciation for farming business machinery and equipment that are used in a farming business; and new markets tax credit (NMTC) by permitting a maximum annual amount of qualified equity investments of $5 million.
Their efforts resulted in two major victories for the commercial real estate industry--the extension of the commercial buildings energy-efficient tax credit and an extension of the 15-year cost recovery period for leasehold improvements.
Albpetrol during the cost recovery period, reverting to a 3% - 5% royalty
Realtors(R) also encourage Congress to enact legislation supported by a majority of the House and President Bush that would provide a tax credit for the construction or rehabilitation of affordable housing; extend expiring tax provisions for a shortened leasehold cost recovery period and for site preparation activities that include the cleanup of brownfields; and review eligibility criteria for the Small Business Administration's disaster assistance programs to ensure that these programs meet the needs of America's smallest businesses, including those owned and operated by independent contractors like Realtors(R).
This represents a four-year increase from the present 39-year cost recovery period for non-residential property.
8031 through the next gas cost recovery period, which starts October 1.