I did a quick search about this talk of Corporate Jet subsidaries and Oil Industry subsidaries. I guess the Corp Jet issue is about the Corp depreciating the Corp Jet vs the the CEO getting from Pt A to Pt B via public transportation. The Dems may try a happy medium, 50% bus depeciation for Corp Jet similar to the business meal deduction for we all know there was a personal meal involved and most likely there was some personal use of the Corp jet.
In the same aricle was discussed the Oil Industry. Rather detailed tax language used but what really caught my eye was in the article's comment section: "I am a business man. And I'm bothered by this deduction: Any industry can write down a portion of the cost of its capital equipment as part of the cost of doing business. Right now, oil in the ground is treated as capital equipment. Again, this "subsidy" amounts to how the cost of doing business is defined. All companies get it, not just oil companies. I understand the oil companies being able to depreciate their equipment, and the cost of finding oil, etc. But I'm not sure why they get to depreciate the oil as if it's inventory. Inventory is something a business buys to resell. So it has an expense. This is sort of like someone going out with one of those metal sweepers and finding a pot of gold. Then deducting the value of the gold in the ground off their taxes. I don't see how that makes sense. And I don't know of any other business, other than oil and gas, that is allowed to do this. Painting it as a depreciation that other types of companies get to take is wrong"
I assume this has some thing to do with depletion. correct?
In the same aricle was discussed the Oil Industry. Rather detailed tax language used but what really caught my eye was in the article's comment section: "I am a business man. And I'm bothered by this deduction: Any industry can write down a portion of the cost of its capital equipment as part of the cost of doing business. Right now, oil in the ground is treated as capital equipment. Again, this "subsidy" amounts to how the cost of doing business is defined. All companies get it, not just oil companies. I understand the oil companies being able to depreciate their equipment, and the cost of finding oil, etc. But I'm not sure why they get to depreciate the oil as if it's inventory. Inventory is something a business buys to resell. So it has an expense. This is sort of like someone going out with one of those metal sweepers and finding a pot of gold. Then deducting the value of the gold in the ground off their taxes. I don't see how that makes sense. And I don't know of any other business, other than oil and gas, that is allowed to do this. Painting it as a depreciation that other types of companies get to take is wrong"
I assume this has some thing to do with depletion. correct?
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