If a taxpayer has a business with a net operating loss carryover reducing current year income, the taxpayer may want to elect to use straight-line depreciation to slow down the cost recovery.

Question

Quizplus · Accepted Answer

By using straight-line depreciation, the taxpayer will have lower depreciation expenses in the earlier years and higher depreciation expenses in later years. This can help offset future taxable income and reduce the impact of the NOL carryover on the taxpayer's tax liability.

If a Taxpayer Has a Business with a Net Operating