Expensing

Research Report

Expensing

From The Encyclopedia of Taxation and Tax Policy
October 1, 1999

Abstract

Expensing is a system allowing a taxpayer to deduct the costs of acquiring a depreciable capital asset immediately as these costs are incurred, instead of taking a stream of depreciation deductions over the useful life of the asset. This article uses an example to illustrate the financial effects of allowing investment costs to be expensed.

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