Uniform Capitalization Rules

Uniform Capitalization Rules

Uniform Capitalization Rules means:
a method of valuing inventory for tax purposes (UNICAP) that requires a business to capitalize direct costs (such as material and labor costs) and an allocable portion of indirect costs that benefit or are incurred because of production or resale activities. Certain expenses must be included in the basis of property produced or in inventory costs rather than currently deducted. These costs are then recoverable through depreciation or amortization or as cost of goods sold. Former IRC (check if this IRC provision is current here) §263A.

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.


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