My most recent Street.com column, “When Accounting Rules Matter” is up on the site.
For those of you without a subscription, its loosely based upon a piece I did for the office: Understanding Accelerated Depreciation.
For those of you who are interested in how tax accounting can impact the economy as well as the markets, prop up your eyelids with some toothpicks and have a go at one of these:
Part II should be ready any day now . . .
Barry,
The link takes us to the realmoney paid site.
Gotta have a subscription to see your article…
“Although the economy is expanding, it is hardly growing at a robust pace. That could
see a positive change soon. A potential surge in orders may hit late in the 4th
quarter, as corporate management rushes to take advantage of this rule before its
expiration. In particular, we note the impact of the depreciation rule in Semiconductor
equipment, Telecom, and Industrial manufacturing.”
Ordered in Q4 AND be put into service BEFORE 12/31/04?
That is NOT going to happen. Looking at typical lead times, install times, start-up, qualification etc. I doubt much expensive capital will be ORDERED in Q4 AND put into service in Q4.
rt