Tax Guru – Ker$tetter Letter

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COLA

Posted by taxguru on May 1, 2005

I received this from a reader regarding my Section 179 info.

Hello,

I’m on your website and for 2006 & 2007 you have “+ COLA”. What exactly is cola?

Thanks,

My Reply:

COLA = Cost Of Living Adjustment

This is a standard term to designate adjusting something for inflation, usually based on something like the Consumer Price Index (CPI).

Kerry Kerstetter

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