The court noted that this analysis was basically an accounting for loss in income, although both appraisers had testified that the income
capitalization method was not appropriate.
The lower court concluded that the 2005 sale was not of "any probative value" in determining the fair market value of the fee-simple interest in the property and that it was proper to disregard the actual rent in arriving at a value using the income
capitalization method.
In addition, taxpayers can annually elect a "book
capitalization method," which may result in capitalization of otherwise deductible repairs if those amounts are capitalized in their books and records [Reg.
A valuation analyst will use the yield
capitalization method when a private company's income (however defined) is expected to change at a non-consistent rate in the future.
The selective
capitalization method requires prerequisite conditions that are based on such factors as technological feasibility, marketability and usefulness.
Chartered life underwriters (CLUs) know the method as the Human Life Value Concept or the Human
Capitalization Method.
Two methods are commonly used: the direct
capitalization method and the yield
capitalization method.
Announcement 89-98 delayed the due dates for filing Form 3115 in order to change to a
capitalization method of accounting until the transition procedures in Rev.
As an alternative to the above
capitalization method, UCR provides a simplified method for adding these costs to inventory.
Both placed more emphasis on the income
capitalization method.
The income
capitalization method values income-producing property by estimating the present value of anticipated future cashflows.
Key words: OMIS, knowledge capitalization,
capitalization method
