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, bonus

-Intangible assets and amortization

-Organization and start-up costs

Objectives

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 result.

-Recognize deduction recognition issues related to amortization.

-Understand the fundamentals of the MACRS system of depreciation/cost recovery.

-Recognize eligibility for immediate Section 179 expensing.

Location