1.

Search the Internet for a current event or article pertaining to one of the
major concepts presented in Chapter 8, such as cost recovery, depreciation,
etc. Relate the tax pros and cons of the cost recovery method and
implementation. Feel free to add your own viewpoint to the write-up!

Tax Law Change Would Help Farmers Depreciate Equipment Faster

This article discusses the eect of a proposal of changing the depreciation

schedule for agricultural equipment form seven to five years. It argues that the it
would support rural development by aligning the length of time that farmers can
take a depreciation deduction with the average useful life of that property, which
will make it easier for farmers to use modern equipment to produce more and
spend less. Moreover, it argues that it will allow them to recover the cost quickly
if the recovery period for deduction match the useful life and financing of
agricultural equipment.