Overview
The “permanent” changes within the PATH Act of 2015 did not stand like a lion in the pathway of change. The Tax Cuts and Jobs Act of 2017 reminds us that Washington has a different definition of the word “permanent.” Again this year Congress has drastically changed depreciation rules. The purpose of this course is to provide an updated, in-depth analysis of the complex maze of rules dealing with depreciation, amortization, and sale of property. This reference manual contains many examples and cases to illustrate the most important points CPAs need to be aware of.
Major Topics:
- Complete coverage of recent tax acts and any new legislation enacted before presentation
- Luxury automobiles, how much this year, and where did these rules come from?
- Technical glitch hits in the second year of TCJA luxury automobile depreciation, including anticipated technical correction
- What are the components for real estate depreciation?
- A new SUV or sedan, a study of depreciation alternatives
- Permanency in §179 depreciation rules? How to maximize its use; when to use it; what property qualifies?
- Sale of property and the depreciation recapture rules (§§1245, 1250, unrecaptured §1250 gain for real estate, §291 for corporations)
- How to depreciate like-kind exchange property
- Reacquired installment sale property -- calculating potential gain and new basis
- Regulations on capitalization of tangible assets and procedures for automatic changes in accounting method associated with the new depreciation rules
- Understanding §197 amortization issues; how to handle intangible asset costs
- Depreciation issues, tax-deferred exchanges, personal property converted to business property, & overview of home sale exclusion
- Guide for compliance and planning issues from pre-ACRS, ACRS, and MACRS depreciation and amortization rules
- Cases and rulings of depreciation and amortization issues and how they impact clients, along with the useful planning opportunities
Learning Objectives
- Understand which assets are subject to depreciation
- Answer advanced §179 and automobile depreciation questions
- Fully understand depreciation and MACRS cost recovery
- Understand installment sales and reacquisitions
- Complete cases related to nontaxable transactions
Designed for:
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
Prerequisite:
Basic knowledge of tax issues for property transactions
Advanced Preparation:
None