cost recovery


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cost recovery

A tax concept commonly called depreciation,but technically different in ways that don't matter to most taxpayers.The explanation is that depreciation is a calculation determined by starting with the acquisition cost of a property and then subtracting the anticipated salvage value when the property's useful life is over.That number is then divided by the number of years one can reasonably assume the property will have a useful life.The resulting figure is the annual depreciation for the property.Because of constant arguments,audits,and litigation over the correct salvage value and the correct useful life for various properties,the IRS replaced the whole depreciation system with the cost recovery system that assigns a useful life to various classes of property,assumes the property will be worthless at the end,and then allows deductions over the course of the useful life.

Cost Recovery

A term sometimes used to refer to depreciation claimed under the ACRS or MACRS methods of depreciation. See also Accelerated Cost Recovery System (ACRS) and Modified Accelerated Cost Recovery System (MACRS).
References in periodicals archive ?
Three-quarters of the states where advanced cost recovery existed quickly saw an EPC contract signed.
Cost Recovery uses information from police and fire reports and a nationwide cost analysis of emergency services to generate bills.
It has been 20 years since capital cost recovery rules have been updated, even though much of the high-tech equipment--such as computers, software, and advanced technology manufacturing equipment--is outdated almost as quickly as it is installed.
In other words, cost recovery should not be used to create a profit center.
These regulations will also "address other related aspects, including release of confidential business information in the cost recovery process and the Agency interpretation of certain statute of limitations provisions," the agenda says.
Annual cost recovery deductions for passenger automobiles are limited to modest amounts by statute.
CRITERIA FOR EVALUATING PROPOSED PAYMENTS SYSTEM CHANGES Cost Recovery In offering payment services, the Federal Reserve must satisfy the cost-recovery objective of the Monetary Control Act: In the long run, aggregate revenues should match costs.
The Mattern & Associates Cost Recovery Survey is the most comprehensive snapshot of cost recovery trends and practices available in the legal field.
citations, property damage/cost recovery, DUI cost recovery, non-sufficient fund checks,
In addition to a bipartisan group of state lawmakers who are actively working to repeal the nuclear tax legislation, numerous municipalities -- including the cities of North and South Miami, Pinecrest, Biscayne Park, Yankeetown, Crestview as well as the Miami-Dade League of Cities and Broward League of Cities -- have all passed resolutions opposing the nuclear cost recovery law.
City officials are considering hiring Cost Recovery Corp.