Summary of Revenue Bill of 1962 as Reported by the Senate Committee on Finance 10650 PDF Download

Author: United States; Congress; Senate; Committee on Finance
Publisher: Forgotten Books
ISBN: 9781330314043
Category : Reference
Languages : en
Pages : 27

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Book Description
Excerpt from Summary of Revenue Bill of 1962 as Reported by the Senate Committee on Finance 10650: The Committee on Finance United States Senate, Eighty-Seventh Congress Second Session 1 Short title, etc. - The act is to be cited as the "Revenue Act of 1962." 2 Investment credit. - The bill provides a credit against tax liability with respect to investments in certain types of property. It generally is 7 percent (3 percent in the case of certain public utilities) of investments in new tangible personal property (except livestock) and depreciable real property, except buildings and structural components of buildings, used in manufacturing, production, extraction, transportation, communications, and certain other services. No credit is allowed for property with a useful life of less than 4 years, nor generally for replacements (to the extent of insurance proceeds) of property destroyed by fire or other casualty or stolen. For property with a life of 4 to 6 years, one-third of the investment is taken into account; for property of 6 to 8 years, two-thirds is taken into account; and for property with longer lives, the full amount of the investment is taken into account. Purchases of used property, up to $50,000 worth, also are eligible for the credit. The credit may offset tax liability in full up to $25,000, but above that point the credit may not reduce tax liability by more than 25 percent. Any unused credit may be canned back for 3 years (not before June 30, 1962) or forward for 5 years and used in those years to the extent there is sufficient tax liability under the applicable limitation. The basis of the property (for depreciation or gain or loss on sale) is reduced by the amount of the investment credit, whether or not it can be immediately used to reduce taxes, with appropriate later adjustments if all the credit is not ultimately used. A "recapture rule" is also provided to recover the tax reduction previously allowed as a credit, to the extent property is disposed of in less than its estimated useful life. This provision is effective for taxable years ending after June 30, 1962, but only with respect to property acquired or to the extent constructed, reconstructed, or erected after that date. 3 Appearances with respect to legislation. - A deduction is provided for costs relating to appearances before, presentation of statements to, or communications sent to a legislative body, a legislative committee, or individual legislator (Federal, State, or local), if the expenses are otherwise ordinary and necessary business expenses. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.