depreciable capital
41Unrecaptured Section 1250 Gain — A type of depreciation recapture income that is realized on the sale of depreciable real estate. Unrecaptured Section 1250 income is taxed at a 25% maximum capital gains rate (or less in some cases). Unrecaptured Section 1250 gains are only… …
42Cost Recovery Period — The number of years it takes to fully depreciate a capital asset. This time period is based on classification of the depreciable life of an asset. Bloomberg Financial Dictionary …
43depreciated cost — In terms of economics: The measure of capital consumption during production, e.g., machine and equipment wear. Bloomberg Financial Dictionary In terms of finance: The process of amortization of fixed assets ( equipment) to spread the cost over… …
44Casualty Pot — n: a step in calculating tax liability under Internal Revenue Code section 1231 in which qualified casualty gains and losses are added together to determine if the result is a net loss or net gain compare main pot ◇ Property that qualifies for… …
45Allowance — A balance sheet contra account used for receivables and depreciable assets. It is used to take into account: a provision for unusual or uncertain events, or is an amount deducted before income is calculated for tax purposes (a capital… …
46recapture of depreciation — Upon the sale or disposition of depreciable property, the portion of the gain which represents the accelerated depreciation previously taken is taxed as ordinary income. Since Tax Reform Act of 1986, there is no monetary difference because… …
47depreciation reserve — An account used to recover the cost of an asset by writing off a portion of the cost over the life of the asset or by some other acceptable method. The depreciation reserve is listed on the balance sheet as a reduction in the cost of the related… …
