Expense or Capitalize?

Authored by Jennifer Kowal
About this Course
Topics covered in this course include: Tax rules on capitalizing expenses with benefit that extends substantially beyond taxable year; Capitalization of costs relating to acquisition of tangible and intangible assets; Application of regulations under section 263A to manufacturers and producers of tangible property, and effect on cost of goods sold; "New" section 263A "repair regulations."; Applicability of change in accounting method rules to capitalization vs. expensing questions. After completing this course, you should be able to: Recognize and apply general rules for determining when expenses should be capitalized; Identify rules that require capitalization of transaction costs into basis of acquired assets; Differentiate the rules of Section 263A and how they apply to clients; Recognize how new "repair regulations" apply in common scenarios; Identify which IRC Section allows for immediate expensing of qualifying equipment purchased during the year; Recognize the qualifications and rules under a Section 179 deduction; Differentiate statements with respect to bonus depreciation; Recognize which U.S. Supreme Court case the court concluded that a taxpayer had to capitalize certain large, one-time fees, because they created significant future benefit; Identify the maximum Section 179 deduction amount for 2017 and how taxpayers can elect the deduction; Differentiate court case studies and how the rulings apply to real client cases; Recognize the requirements of IRC Section 263A and do not apply to producers of property with gross receipts of what amount or less during what period of time; Identify the de minimis safe harbor election amount per invoice or item under IRC Section 263A if the taxpayer has applicable financial statements; Identify which form a taxpayer is required to file based on the revised repair regulations issued in 2013, if a taxpayer has been treating items differently prior to these regulations.
$ 50.00
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NASBA Field of Study
CPE Credits
Basic familiarity with concept of capitalization of expenditures.
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