Capitalized Costs & Depreciation - Tax Staff Essentials

How do I treat a property transaction?

By understanding the rules for capitalized costs and depreciation, you can answer this question and help your clients achieve meaningful tax savings.

You'll also learn about the rules for:

• Tax basis
• Depreciation
• Amortization
• Like-kind exchanges
• Involuntary conversions
• Business property sales
• Property-related timing issues
• Planning opportunities

Covering H.R. 1's vast effects on capitalized costs and depreciation

Course materials apply the developments brought on by H.R. 1, commonly referred to as OBBBA, including:

• Changes in the treatment of Section 174 research and experimental expenditures
• Section 179 deduction enhancements
• Bonus depreciation updates
• Addition of a temporary 100% deduction for qualified production property

Part of Tax Staff Essentials Level 1

This self-study online course is part of Tax Staff Essentials Level 1, a comprehensive learning program that provides tax staff with the technical training required to support their teams.

This course can be purchased individually or as part of the Tax Staff Essentials Level 1 bundle.

Who Will Benefit

• Public accounting staff and senior associates
• 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 startup costs
• Research and experimental expenditures
• H.R. 1, commonly referred to as OBBBA

Learning Outcomes

• 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.
• Recall the tax treatment of expenditures for materials and supplies.
• Distinguish between deductible and capitalized expenditures related to repairs and improvements.
• 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.