DESCRIPTION
This module begins with a review of the fundamental depreciation concepts. Particular focus is given to the various rules for expensing versus capitalizing different types of costs. The Tangible Property Regulations are also reviewed in detail. The material largely focuses on understanding the concepts of depreciation recapture, Sections 1245 and 1250 property, and Section 1231 gains and losses. There are several exercises and case studies throughout the module.
LEARNING OBJECTIVES
- Identify tax rules for depreciation and amortization including depreciable lives, depreciation methods for various asset classes, specific vehicle rules, and listed property.
- Identify the use of, and differences between, section 179 and bonus depreciation.
- List the depreciation options for building improvements.
- Define depreciation recapture, Section 1245 property, and Section 1250 property.
- Calculate Section 1231 gains and losses.
- (optional) Describe the application of the repair regulations and review the basics of capitalizing transaction costs.
