Tax implications of new measures of building depreciation
Economic depreciation, or capital consumption, is the decline in value of an asset with age, whether because of obsolescence, wear and tear or some other factor. Measured rates of economic depreciation for buildings and other assets inform the estimation of the nation’s capital stock by the Commerce Department’s Bureau of Economic Analysis (BEA). Also, measured rates of economic depreciation have historically guided the development of depreciation schedules in the tax law that determine how taxpayers deduct capital costs.
Learn more from National Economics and Statistics (NES) group leader Drew Lyon and manager Will McBride as they discuss the tax implications of new measures of building depreciation.