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.
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The fund will provide grant finance to reduce the cost of advanced low-carbon technologies, such as those related to waste-to-energy schemes and smart grids, which often have initial high investment costs and long cost recovery periods.
ADB sets up $17.6-million trust fund
that have shorter cost recovery periods than real property, such as commercial buildings, assisted living facilities and residential rental units.
Money found: cost segregation studies can help clients realize tax savings
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.
Capitalization rules top TEI's spring agenda: IRS funding, role of Taxpayer Advocate, debt collection, and options withholding also prompt responses. (Recent Activities)
One issue that will come up in 2001 is cost recovery periods for corporate assets.
Levitt Gets Personal
The General Accounting Office has recommended that purchased intangible assets, including goodwill, be amortized over specific statutory cost recovery periods.
'Assembled work force' may not be amortized
The changes brought about by TRA 86 concerning capital gains taxation, the cost recovery periods and write-off methods for real property, and the deductibility of passive losses, were all at odds with good tax economics.
TRA 86 not only lengthened the cost recovery period of most real property--non-residential property to 31.
By increasing the cost recovery period over 60% and by shifting much of the cost that could be recovered from the earlier to the later years, TRA 86 decreased the value of real estate both to current holders and to all prospective buyers.
Tying the cost recovery period to the "life" of the investment actually creates a bias against investment in "long-lived" capital, i.
Destroying real estate through the tax code
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