TY  - JOUR
AU  - Auerbach,Alan J.
TI  - The New Economics of Accelerated Depreciation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 848
PY  - 1983
Y2  - June 1983
UR  - http://www.nber.org/papers/w0848
L1  - http://www.nber.org/papers/w0848.pdf
N1  - Author contact info:
Alan J. Auerbach
Department of Economics
530 Evans Hall, #3880
University of California, Berkeley
Berkeley, CA 94720-3880
Tel: 510/643-0711
Fax: 510/643-0413
E-Mail: auerbach@econ.berkeley.edu
AB  - The Economic Recovery Tax Act of 1981 included the largest business tax cut in U.S. history, embodied in the Accelerated Cost Recovery System. This paper describes in detail the provisions of the new treatment of depreciable property ,and analyzes in a fairly nontechnical way its economic impact. Particular attention is paid to a novel part of ACRS that creates a "safe harbor" for a wide range of sale—leaseback arrangements, effectively permitting the sale of depreciation deductions by investors without taxable income.
ER  -