Investment Decisions and Depreciation Choices under a Discretionary Tax Depreciation Rule
نویسندگان
چکیده
منابع مشابه
Optimal Dynamic Investment Policy under Different Rates for Tax Depreciation and Economic Depreciation
This paper analyzes the consequences of incorporating a different rate for tax depreciation than for economic depreciation. Firms most often choose their tax depreciation rate in a strategic way. It would therefore be a coincidence if this optimization process leads to a tax depreciation rate that equals the economic depreciation rate. The implications of a difference between tax depreciation a...
متن کاملDynamic tax depreciation strategies
The tax depreciation decision potentially has significant impact on the profitability of firms and projects. Indeed, the depreciation method chosen for tax purposes affects the timing of tax payments, and, as a consequence, it also affects the after-tax net present value of investment projects. Previous research focusses on the optimal choice of depreciation method under the assumption that the...
متن کاملTemporary Investment Tax Incentives: Theory with Evidence from Bonus Depreciation
There are strong incentives to delay or accelerate investment to take advantage of predictable changes in after-tax prices. For sufficiently long-lived capital goods, these incentives are so strong that the intertemporal elasticity of investment demand is nearly infinite. For temporary tax changes, the equilibrium shadow price of long-lived capital goods should fully reflect the tax subsidy reg...
متن کاملInvestment Stimulation by a Depreciation Mechanism
All opinions expressed here are those of the authors and not those of the Economics Education and Research Consortium Research dissemination by the EERC may include views on policy, but the EERC itself takes no institutional policy positions The authors investigate the possibility of utilizing the depreciation mechanism to provide incentives for undertaking investment in the real sector of the ...
متن کاملOptimal tax depreciation with losses carried forward
The choice of depreciation method from among straight-line and accelerated methods can have a significant impact on the present value of expected tax payments. This is a problem that has been studied for decades, with most results indicating the optimality of accelerated methods. Recent research has begun to question this claim by relaxing one of the original assumptions ofpositive taxable inco...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: European Accounting Review
سال: 2017
ISSN: 0963-8180,1468-4497
DOI: 10.1080/09638180.2017.1286250