Description

Depreciation, amortization, and capitalization all play an essential role in accurate tax reporting.

Target Audience

- public accounting staff and senior associates

- tax professionals in company finance or tax departments

Course Objectives

'- Recall the initial tax basis of business property, including those purchased and acquired in an exchange transaction.

- Identify the tax basis of self-constructed assets.

- Distinguish between deductible repairs and capitalized improvements.

- Recall the tax treatment of expenditures for materials and supplies.

- Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.

- Recognize which assets are considered listed property.

- Identify intangibles that are subject to capitalization and amortization.

Subjects

- 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

- Research and experimental expenditures