Under what circumstances might a taxpayer elect the alternative depreciation system for new equipment acquired this year?
A)A taxpayer has significant charitable contribution carryovers that will expire after this year.
B)A taxpayer is undertaking a major R&E project which will result in an usually low marginal tax rate for the next few years.
C)A taxpayer has significant NOL carryovers.
D)All of the above

Question

Quizplus · Accepted Answer

A taxpayer might elect the alternative depreciation system (ADS) if they have significant charitable contribution carryovers, are undertaking a major R&E project, or have significant NOL carryovers, as ADS can help manage taxable income and optimize tax benefits over time.

Under What Circumstances Might a Taxpayer Elect the Alternative Depreciation