Capitalized Costs & Depreciation - Tax Staff Essentials

Overview

Depreciation, amortization, and capitalization all play an essential role in accurate tax reporting.

Highlights

Key Topics

• Tax basis of property acquisitions
• Initial basis of property acquired in an exchange transaction
• Materials, supplies, repairs and improvements
• Accounting method changes
• Depreciation: MACRS, Section 179 and bonus
• Intangible assets and amortization
• Organization and start-up costs
• Research and experimental expenditures

Prerequisites

None

Designed For

Who Will Benefit

• Public accounting staff and senior associates
• Tax professionals in company finance or tax departments

Objectives

Learning Outcomes

• Recall the initial tax basis of business property, including those purchased and acquired in an exchange transaction.
• Identify the tax basis of self-constructed assets.
• Recall the tax treatment of expenditures for materials and supplies.
• Distinguish between deductible and capitalized expenditures related to repairs and improvements.
• Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.
• Recognize which assets are considered listed property.
• Identify intangibles that are subject to capitalization and amortization.