Land and building – composite price – depreciation on entire cost allowed – though favorable to assessee but decisions seems wrong and need reconsideration. Composite costs should be allocated.

Land and building – composite price – depreciation on entire cost allowed – though favorable to assessee but decisions seems wrong and need reconsideration. Composite costs should be allocated. https://www.taxtmi.com/article/detailed?id=10069 Where purchase agreements state a composite price, the consideration should be reasonably allocated between land and construction so that depreciation is claimed only on the portion attributable to building. Accounting practice and S.43(1) support estimating construction cost adjusted for consumed life at acquisition, rather than permitting depreciation on the entire composite cost merely because the deed does not state separate amounts. en-us Mon, 08 Nov 2021 07:03:11 +0530 Mon, 08 Nov 2021 07:03:11 +0530 TaxTMI RSS Generator Land and building – composite price – depreciation on entire cost allowed – though favorable to assessee but decisions seems wrong and need reconsideration. Composite costs should be allocated. https://www.taxtmi.com/article/detailed?id=10069 Where purchase agreements state a composite price, the consideration should be reasonably allocated between land and construction so that depreciation is claimed only on the portion attributable to building. Accounting practice and S.43(1) support estimating construction cost adjusted for consumed life at acquisition, rather than permitting depreciation on the entire composite cost merely because the deed does not state separate amounts. Articles Accounting - Auditing Mon, 08 Nov 2021 07:03:11 +0530 https://www.taxtmi.com/article/detailed?id=10069