The changes are generally effective for property placed in service after December 31, 1986. See Modified Accelerated Cost Recovery System. Accelerated Depreciation Various methods of depreciation that yield larger deductions in the earlier years of the life of an asset than does the straight-line method. Accident and Health Benefits Employee fringe benefits provided by employers through the payment of health and accident insurance premiums or the establishment of employer-funded medical reimbursement plans. Employers generally are entitled to a deduction for such payments.
Employees generally exclude the benefits from gross income.
A plan for reimbursing employees for expenses such as meals, entertainment, travel, and transportation incurred for business purposes on behalf of the employer. A plan is an accountable plan if the employer requires the employee to account for all business expenses and to return any excess reimbursements. For employees under an accountable plan, reimbursements aren't entered on the tax return as income and the expenses aren't deductible. The method under which income and expenses are determined for tax purposes. Major accounting methods are the cash method and the accrual method.