Overview
The “permanent” changes within the Tax Cut and Jobs Act may stand like a lion in the pathway of change, but Washington has a different definition of the word “permanent.” Inflation adjustments and technical corrections are all included within this 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
- New technical correction Rev. Proc. 2019-13 -- use it or stand to lose second-year depreciation deductions for luxury automobiles
- 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
- 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 depreciation and sale of assets
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