Reflections on the Chapter

REFLECTIONS ON THE CHAPTER 3

Reflectionson the Chapter

Reflectionon the Chapter

Whenit comes to issues of taxation especially property tax, every subjectis important. It is not easy to single out any of the aspects ofdiscussed in the chapter that is considerably trivial. All theconcepts discussed in the chapter provide knowledge about thedifferent types of tax regimes imposed on property. First, the wayproperty is acquired determines the amount of tax imposed on itsvalue. Another very important aspect discussed in the chapter is thefact that even the intangible assets such as goodwill are subject toa type of the depreciation called amortization(Fullerton,1983).. Ideally, people should understand each of the conceptsmentioned in chapter because they affect a very important aspect ofbusiness: property. Furthermore, taxes also extend to property notused for commercial purposes.

Thegeneral information provided in the chapter about the different typesof property such as realty property and personalty property is veryimportant and easily understandable to a layman. It is importantthat an individual understands the types and value of their propertythat could be subject to taxation so that they can make sounddecisions concerning the same. As learned from the chapter realtyproperty is land and any other property affixed on land permanently.The difference between personal use property and personalty propertyis also explained in the chapter so that readers do not end upconfusing between the two. The concept of the basis should beunderstood by all property owners as well. Allowed and allowableamounts of tax on every asset category are also vital. The fact isthat general information on taxation should be broken down in simplelanguage because even the laymen have a right to know because thetaxman does not consider the knowledge of the tax payer beforedemanding tax.

Reference

Fullerton,D. (1983). Which effective tax rate? (No. w1123).National Bureau ofEconomic Research.