Why might a taxpayer elect to depreciate assets using the Alternative Depreciation System (ADS)?
I.The taxpayer desires rapid write off of assets.
II.The taxpayer may be close to being subject to the alternative minimum tax.
III.The taxpayer is experiencing a low income time period.

A)Statements I and III are correct.
B)Only statement I is correct.
C)Statements II and III are correct.
D)Statements I and II are correct.
E)Statements I, II, and III are correct.

Question

Why might a taxpayer elect to depreciate assets using the Alternative Depreciation System (ADS)?
I.The taxpayer desires rapid write off of assets.
II.The taxpayer may be close to being subject to the alternative minimum tax.
III.The taxpayer is experiencing a low income time period.
​
A)Statements I and III are correct.
B)Only statement I is correct.
C)Statements II and III are correct.
D)Statements I and II are correct.
E)Statements I, II, and III are correct.

Quizplus · Accepted Answer

The Alternative Depreciation System (ADS) is often used to avoid the alternative minimum tax and to spread deductions over a longer period, which can be beneficial during low income periods.

Why Might a Taxpayer Elect to Depreciate Assets Using the Alternative