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If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized and depreciate?

If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized and depreciate?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized and depreciate?

ΑΝΤIGIPATION ΝTICIPΑΤION SHORT CASE... In 2021, a school is considering to buy a new building as they prepare for the reopening of classes. Under the NIRC, an educational institution may claim the deduction in full amount or be capitalized and depreciate. The school is currently subject to 10% special tax rate. A new bill is expected to be passed effective January 2022, reducing the tax rate for schools to 1%. If you are the tax adviser, what would be your advise?
Transcribed Image Text:ΑΝΤIGIPATION ΝTICIPΑΤION SHORT CASE... In 2021, a school is considering to buy a new building as they prepare for the reopening of classes. Under the NIRC, an educational institution may claim the deduction in full amount or be capitalized and depreciate. The school is currently subject to 10% special tax rate. A new bill is expected to be passed effective January 2022, reducing the tax rate for schools to 1%. If you are the tax adviser, what would be your advise?
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