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Allocate

On a balance sheet, to spread an expense over more than one accounting period. One of the most prominent examples of allocation is depreciation, which spreads the cost of an asset over a certain number of years.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

allocate

1. To spread systematically a single monetary amount over a number of time periods, usually years. For example, depreciation allocates the cost of a capital asset over its useful life.
2. To distribute cost or revenue throughout a number of operations or products. For example, a business must decide how to allocate the costs of running its headquarters over all its operations to determine the profitability of each of those operations.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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In addition, there are also two safe-harbor methodologies the taxpayer may use for allocating state tax.
Allocation and apportionment of expenses for Sec. 199 purposes: for many taxpayers, calculation of the Sec. 199 deduction will require an enormous amount of work. This article focuses on one aspect of the deduction, the allocation and apportionment of expenses under the Sec. 861 regulations and the proposed Sec. 199 regulations
Allocating discounts to all inventory generally conforms to the best accounting practice in various trades or businesses.
Service scrutinizes inventory
Allocating a disproportionate amount of tolerable misstatement to financial statement elements such as inventory increases audit efficiency by reducing the audit resources needed to achieve the desired level of audit risk.
Although some CPA firms have developed a structured approach for allocating tolerable misstatement amounts to financial statement elements, other firms determine this allocation within broad guidelines.
Comparison risk ranking applications: here's one method of allocating tolerable misstatement
These benefits provide a basis for allocating the cost savings of acting together.
* THERE IS SOME CONCERN charitable organizations are too liberal in allocating costs to program expenses instead of to administration or fund-raising.
Reasonable joint cost allocations in nonprofits
Acquiring a specific intangible avoids the problem of allocating cost to a variety of assets after the fact.
Deducting the cost of intangibles
Second, once the insured starts allocating GST exemption to a trust, he or she will want to continue to do so each year, to maintain the trust's fully exempt status.
Third, and most importantly, the trust can still achieve fully exempt status in the future, without the insured allocating GST exemption currently.
"Wait and see" GST tax planning
The partnership may specify in its agreement the partners' interests in partnership profits for purposes of allocating excess nonrecourse liabilities, provided the specified interests are reasonably consistent with allocations of some other significant item of partnership income or gain.
Prop. regs. on allocation of partnership debt
The final regulations apply the general residence rule for allocating recognized losses from portfolio stock and stock in RICs, but retain the S corporation exception.
Final loss allocation regs. result in increased FTC limitations
In the August 1997 issue of The Tax Adviser ("Beware Not Allocating the GSTT Exemption on a Gift Tax Return--A Trap for the Unwary," pp.
AICPA's legislative solution to the GST tax exemption allocation trap

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