Description Of The Treatment By Certain Countries Of Cost Recovery For Business Investment In Tangible And Intangible Assets
 

This document, prepared by the staff of the Joint Committee on Taxation, provides information related to cost recovery in different income tax systems in the context of capital investment by businesses. The first section provides a description of the income tax rules, as in effect in 2012, with respect to the cost recovery of capital investment in by businesses in the United States, Canada, Germany, Japan, and the United Kingdom. The second section provides examples illustrating the pattern of depreciation over time and the present value of depreciation allowances for investments in commercial buildings, computers, computer software, tractor trailers, machinery and equipment, and construction equipment based on the aforementioned countries’ tax rules.