Simon v. Commissioner
Significance
Significance
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The court found that § 168 of the Tax Code does not prevent a taxpayer from depreciating a business [asset](/wiki/Asset "Asset") solely due to its age, or because the asset may have appreciated in value over time. The potential consequence of this simplification is that § 168 may "allow an asset to be [written off](/wiki/Written_off "Written off") over a period much shorter than its actual useful life and that the entire cost might be deducted despite the fact that there might be no actual economic decrease in value".


What are the implications of § 168 for businesses that have assets with high depreciation rates?