Tax depreciation: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
(Add link.) |
||
| (6 intermediate revisions by one other user not shown) | |||
| Line 1: | Line 1: | ||
1. | |||
Depreciation that is an allowable expense under applicable tax laws. | Depreciation that is an allowable expense under applicable tax laws. | ||
Tax depreciation generally gives the same total tax relief over time, as the total accounting depreciation charged on the same assets over their total life. | |||
However, the phasing of the tax relief will often differ from the phasing of the accounting depreciation charges. | |||
''US | |||
These timing differences are one source of deferred tax assets and liabilities. | |||
2. ''US tax.'' | |||
US tax relief for capital expenditure under the Modified Accelerated Cost Recovery System (MACRS). | US tax relief for capital expenditure under the Modified Accelerated Cost Recovery System (MACRS). | ||
| Line 14: | Line 19: | ||
* [[Capital allowances]] | * [[Capital allowances]] | ||
* [[Capital expenditure]] | * [[Capital expenditure]] | ||
* [[Deferred tax]] | |||
* [[Depreciation]] | * [[Depreciation]] | ||
* [[ | * [[Tax]] | ||
* [[Tax relief]] | |||
* [[Writing down allowance]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 11:48, 23 November 2023
1.
Depreciation that is an allowable expense under applicable tax laws.
Tax depreciation generally gives the same total tax relief over time, as the total accounting depreciation charged on the same assets over their total life.
However, the phasing of the tax relief will often differ from the phasing of the accounting depreciation charges.
These timing differences are one source of deferred tax assets and liabilities.
2. US tax.
US tax relief for capital expenditure under the Modified Accelerated Cost Recovery System (MACRS).
