Capitalized Costs and Depreciation & Taxation of Property Transactions

The morning session: How do I treat a property transaction?

The first half of the day will be spent helping you answer this question by focusing on understanding capitalized costs and depreciation and learning about the IRS cost and repair regulations dealing with property transactions so you can help your clients optimize their tax savings. Tax professionals will also learn about the rules for depreciation, amortization, like-kind exchanges, involuntary conversions, business property sales, and important property-related timing issues and planning opportunities.

The afternnon session: What are important property-related timing issues and planning opportunities that can lead to significant tax savings?

A fundamental understanding of the taxation of business property transactions is essential to any tax practice. This course prepares tax professionals to handle the tax effects of common property transactions, including like-kind exchanges and involuntary conversions. It also covers important property-related timing issues and planning opportunities that can lead to significant tax savings.

• Qualifies for IRS CE

This event is part of ISCPA's 2024 Tax School, designed to provide a convenient, comprehensive education about tax fundamentals for early-career tax staff in a series of courses. This series, designed for the ever-changing and complex world of tax, features high-quality presentations and an interactive, colleague-to-colleague approach to ensure participants develop the skills to apply their knew knowledge in practical settings.

When you complete the morning session, you will be able to:

• Recall the initial tax basis and adjusted tax basis of business property.
• Identify the tax basis of self-constructed assets.
• Distinguish between deductible repairs and capitalized improvements.
• Recall changes in the tax rules to the classification of expenditures such as materials, supplies, repairs, and improvements.
• Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.
• Recognize which assets are considered listed property.
• Recognize the types of purchased intangible costs that must be capitalized.
  

When you complete the afternnon session, you will be able to:

• Calculate gain or loss realized and recognized on business property dispositions.
• Identify the tax treatment of net Section 1231 gains and net Section 1231 losses.
• Determine the application of the Medicare contribution tax to property dispositions.
• Recall rules for depreciation subject to recapture when property was acquired in a nontaxable exchange transaction or by gift or bequest.
• Recall the requirements for deferring realized gain on an involuntary conversion.
• Understand the rules dealing with like-kind exchanges and involuntary conversions, all updated for tax reform.
• Apply proper treatment of involuntary conversions.
• Explain the deferral of realized gain or loss on a like-kind property exchange.
• Determine the amount of gain or loss on the sale of property.
• Determine the character of recognized gain or loss on the disposition of business property.
• Implement comprehensive property tax strategies to minimize taxes. 

• 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

The afternoon session:

• Sections 1231, 1245, 1250
• Depreciation recapture
• Capital gains and losses
• Non-recognition transactions

• Manual
  • If you did not purchase a printed manual, download it from your upcoming events in "My CPE" on website, and bring it with you
  • If you did purchase a printed manual and would also like an electronic copy be sure to download it
• Review ISCPA Parking Map - found in your email confirmation