How do I treat a property transaction?
You'll be able to answer this question after taking a focused look at the IRS cost and repair regulations. With an understanding of capitalized cost and depreciation rules, you can help your clients achieve significant tax savings. You'll also learn about the rules for:
- Depreciation
- Amortization
- Like-kind exchanges
- Involuntary conversions
- Business property sales
- Property-related timing issues
- Planning opportunities
What's going on with capitalized costs and depreciation?
Course materials cover the latest legislation, including:
- The requirement to capitalize and amortize Section 174 research and experimentation expenditures
- Changes to bonus depreciation levels starting in 2023
- The technical correction issued in the Coronavirus Aid, Relief, and Economic Security (CARES) Act
DESIGNED FOR
public accounting staff and senior associate
Tax professionals in company finance or Tax departments
BENEFITS
- Recall the initial tax basis and adjusted tax basis of business property.
- Identify the tax basis of self-constructed assets.
- Distinguish between deductible repairs and capitalized improvements.
- Recall changes in the tax rules to the classification of expenditures such as materials, supplies, repairs, and improvements.
- Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.
- Recognize which assets are considered listed property.
- Recognize the types of purchased intangible costs that must be capitalized.
HIGHLIGHTS
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 costsCOURSE LEVEL
Basic
PREREQUISITES
None