Capitalized Costs & Depreciation - Tax Staff Essentials

Overview

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

Prerequisites

None

Objectives

• 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.
• Distinguish between deductible repairs and capitalized improvements.
• Recall the tax treatment of expenditures for materials and supplies.
• 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.

Highlights