Editor: Paul L. Caron, DeanPepperdine University School of Law
Tuesday, November 23, 2010
By Paul Caron
Tax | Permalink
Listed below are links to weblogs that reference Basis: The Basics:
Trucks and other capital equipment seldom appreciate, even with fabulous maintenance.
Like cars, they lose value when driven off the showroom floor -- perhaps not as rapidly but they depreciate nonetheless. As technological progress continues, they move toward obsolescence and require more and more maintenance as time goes on.
Buildings don't appreciate either. What rises in value is land, and it rises for reasons with little or nothing to do with the activity or inactivity of the owner or occupant, and everything to do with the activity and investment of the community.
Farmers might be an exception: in the early years, they make improvements to land -- clearing it, fencing it, draining or irrigating it, maintaining or increasing its fertility through good care -- but generally most of any increase in value comes from public investment in roads, highways, bridges, utilities, schools, and other public goods and services, often an effect of advancing sprawl.
Posted by: LVTfan | Nov 24, 2010 1:11:13 PM
This blog is an Amazon affiliate. Help support TaxProf Blog by making purchases through Amazon links on this site at no cost to you.