A Computerized Approach to Choosing Depreciation Options
针对小企业面临的复杂折旧规则，开发了两个计算机模型，帮助比较不同税务处理下的现金流未来价值，从而选择最优的折旧方案。
A COMPUTERIZED APPROACH TO CHOOSING DEPRECIATION OPTIONS For most small businesses, the options available in the tax treatment of depreciable personal property (i.e., business property other than real estate) present a perplexing problem. The options seem to grow more complex each year as Congress passes more and more changes in the laws governing depreciation deductions, investment tax credits, and immediate expensing of assets. The Economic Recovery Tax Act of 1981 (ERTA) made many sweeping changes in the treatment of depreciable property with the institution of the Accelerated Cost Recovery System (ACRS). Related changes in the Investment Tax Credit (ITC) also were made under ERTA. The following year, the Tax Equity and Fiscal Responsibility Act (TEFRA) added the requirement that the ACRS basis be reduced by one-half of the ITC. As an alternative, a reduced ITC was available. The Tax Reform Act of 1984, a division of the larger Deficit Reduction Act, further modified the tax treatment of some depreciable property. What has evolved is a confusing set of rules which make it difficult to decide what alternative is best, considering the business's investment, current and future tax brackets, projected rates of return, and so on. As a result, investments in depreciable personal property (e.g., delivery vehicles, equipment) can be treated in eight different ways, given the relationships among ACRS, ITC, and the immediate expensing requirement (IRC Sec. 179). To simplify this procedure, the authors have developed two computer models which can be used to make the capitalization/-expensing decision when investing in depreciable personal property. Two general computer models designed to compare the future value of cash flows generated under alternative tax treatments are presented in this article. Based on the cost of the asset, the expected rates of return, and the marginal tax rates, the programs provide a means of identifying the best treatment. These programs also allow the user to input various marginal tax rates and expected rates of return in order to conduct sensitivity analyses for each option. OPTIONS UNDER CURRENT LAW The ERTA of 1981 modified previous depreciation computations with the addition of ACRS for property acquired after 1981. For depreciable personal property, there are two primary classes of property: three-year property, including automobiles and light trucks. five-year property, including most other machinery and equipment. furniture and fixtures (including personal computers). (The ten- and fifteen-year categories for public utility property are not being considered in this study.) Taxpayers are given the option of using the ACRS percentages to compute deductions by multiplying cost times the percentage given for the year of service. These percentages are listed in table 1. In addition, the taxpayer may elect to use straight-line depreciation over a three-, five-, or twelve-year life for three-year ACRS property and a five-, twelve-, or twenty-five-year life for five-year ACRS property. The Internal Revenue Service requires that a halfyear convention be applied when using straight-line depreciation. This means that it takes four years to depreciate three-year property and six years to fully depreciate five-year property. The percentages used when electing straightline depreciation for three and five years are shown in table 2. As with the ACRS percentages, these are multiplied by the cost of the asset. TEFRA, however, requires that the cost of the asset used in the preceding computations be reduced by one-half of the ITC available (the ITC is 6 percent of the cost of three-year property and 10 percent of the cost of five-year property). As an alternative to the asset/cost basis reduction, a 4 percent ITC and 8 percent ITC were available for three-and five-year properties, respectively. …