Longer class lives for depreciable property and the required use of the straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Question

Quizplus · Accepted Answer

Longer class lives and the requirement to use the straight-line method spread out the depreciation deductions over more years, reducing the annual tax savings and making capital investments less attractive from a tax perspective.

Longer Class Lives for Depreciable Property and the Required Use