Cost Recovery Period

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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.
References in periodicals archive ?
Other subjects touched on in TEI's comments include amount paid to terminate certain contracts or in connection with tangible property owned by another, defense of title, transaction costs, book-tax accounting conformity, and safe harbor cost recovery periods.
One issue that will come up in 2001 is cost recovery periods for corporate assets.
The General Accounting Office has recommended that purchased intangible assets, including goodwill, be amortized over specific statutory cost recovery periods.