Which of the following provisions of the Internal Revenue Code can be used to reduce the amount of the income tax expense arising from capital investment projects?

Question

Quizplus · Accepted Answer

The depreciation deduction allows a business to spread the cost of a capital investment over its useful life, reducing the amount of taxable income and therefore the income tax expense. Deductions for individuals, such as traditional IRA contributions, are not relevant to capital investment projects. The minimum tax provision and charitable contributions also do not directly relate to reducing the income tax expense of capital investment projects.

Which of the Following Provisions of the Internal Revenue Code