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Why Would a Taxpayer Ever Elect to Use the Alternative

question 63

Essay

Why would a taxpayer ever elect to use the alternative depreciation system (ADS) rather than the MACRS?


Definitions:

Erosion

The process by which soil, rock, and other surface material are worn away by wind, water, or other natural agents.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to produce heat and light, commonly seen in burning.

Carbon Dioxide

A clear, scentless gas that is a byproduct of burning carbon-based substances and the respiration process, which is utilized by plants during the process of photosynthesis.

Terrestrial

Terrestrial refers to organisms or environments that are land-based, as opposed to aquatic or marine.

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