Capitalized Costs and Depreciation - Tax Staff Essentials

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How do I treat a property transaction?

This course will help you answer this question by focusing on understanding capitalized costs and depreciation and learning about the IRS cost and repair regulations dealing with property transactions so you can help your clients gain significant tax savings.

Tax professionals will also learn about the rules for depreciation, amortization, like-kind exchanges, involuntary conversions, business property sales, and important property-related timing issues and planning opportunities.

Course materials include the latest legislation, including the impact of the Tax Cuts and Jobs Act of 2017 (TCJA) tax reform law, as well as the technical correction issued in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This course provides CPE credit in the Tax field of study.

Who Will Benefit

• Public accounting staff and senior associate
• Tax professionals in company finance or tax departments

Key Topics

• Tax basis of property acquisitions
• Initial basis of property acquired in an exchange transaction
• Materials, supplies, repairs, and improvements
• Accounting method changes
• Depreciation: MACRS, Section 179, and bonus
• Intangible assets and amortization
• Organization and start-up costs

Learning Outcomes

• Calculate the initial tax basis and adjusted tax basis of business property.
• Determine the tax basis of self-constructed assets.
• Distinguish between deductible repairs and capitalized improvements under new tax provisions.
• Classify expenditures properly for tax purposes.
• Apply recent changes in the tax rules to classification of expenditures and tax results.
• Recognize deduction recognition issues related to amortization.
• Recognize the fundamentals of the MACRS system of depreciation/cost recovery.
• Recognize eligibility for immediate Section 179 expensing.