Law Commons^™

The Waters Are Rising! Why Isn't My Tax Basis Sinking? Why Coastal Land Should Be A Depreciable Asset In Light Of Global Warming And The Rise In Sea Level, Jason P. Oppenheim

University of Massachusetts Law Review

Depreciation deductions are the Internal Revenue Code's method of allowing taxpayers to take deductions on long-term investments. Unlike normal deductions, depreciation requires the taxpayer to apportion the expense over the life of the asset. While most assets used for the production of income may be depreciated, the Internal Revenue Service and courts have never allowed land to be depreciated. The treatment of land as a non-depreciable asset is deeply rooted in the idea that it does not have a useful life -- it lasts forever. However, global temperature has risen rapidly over the past fifty years and is expected to …