The PATH Act of 2015 made “permanent” changes to depreciation; however, the Tax Cuts and Jobs Act reminds us that Washington has a different definition of the word “permanent.” Individuals, corporations, partnerships, LLCs, trusts, estates, and nonprofits all utilize two of the most often prepared tax forms -- Form 4562 -- Depreciation and Amortization, and Form 4797 -- Sales of Business Property. This course provides a quick dissection of both of these complicated forms. New to experienced tax preparers may utilize this manual for all tax returns/entities they prepare. This reference manual contains many examples and cases to illustrate the most important points CPAs need to be aware of.
- Detailed coverage of §179 expense election and §168(k) bonus or "additional first-year depreciation" -- how to maximize them, definitions, limitations, what property qualifies, etc.
- Sale of property and the depreciation recapture rules (§§1245, 1250, unrecaptured §1250 gain for real estate, §291 for corporations)
- MACRS depreciation -- finding the proper method, convention, and recovery period
- What is “listed property” and what are the current limitations?
- Amortization of start-up, organization, and other expenditures
- New regulations on capitalization of tangible assets and procedures for automatic changes in accounting method associated with the new depreciation rules
- AMT depreciation adjustments and how to avoid them
- Examples, cases, and rulings of depreciation and amortization issues and how they impact clients, along with the useful planning opportunities
- Fully understand two of the most commonly prepared tax forms
- Understand assets from acquisition to disposition
- Discuss cases highlighting some of the practical issues tax preparers face
CPAs in industry and public accounting who need a thorough grasp of this important area of tax law and who want to maximize the possible tax savings for their clients
Basic knowledge of tax issues for property transactions