Special Tax Rules

Tax laws include various exceptions and special options that usually must be considered when corporate income taxes are figured. This is no different from the case when an individual uses the long form to figure his federal income tax. For instance, in 1970 a corporation could deduct 20% of the capitalized cost as an additional first-year depreciation, subject to the following restrictions the costs of constructing buildings do not apply the maximum amount deducted does not exceed 10,000 it is taken in the year the asset is purchased and the taxpayer is not a trust. 

These and other such items are generally ignored when an engineer runs an economic evaluation to determine the merits of a given project. 

Those wishing to find out more about these items should consult the various publications of the Internal Revenue Service. They can most easily be located by using the United States Government Publication Index, which is available in most large libraries. The individual reports can be purchased from the Superintendent of Documents in Washington, D. C. 

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