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.” Again this year Congress has drastically changed depreciation rules. 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