Lightning Fast Depreciation: The New World of Depreciation under Tax Reform
Authored by Greg White
About this Course
Topics covered include:
Overview;
TCJA and Bonus Depreciation;
Allocation of Cost: Building, Land, and Personal Property;
Passenger Automobiles;
15-Year Property;
179 Qualified Real Property;
Trading Places QIP 179 and Bonus Depreciation;
QRP Building Placed in Service First;
The De minimis Basics;
Deminimis Required Book Conformity;
Improvements and the DeMinimis Rules;
Placed in Service
Buildings Are Different;
Ready To Go Equipment Is Different;
Unfinished Equipment Is Different!!;
Equipment in a Closed Business is Different;
Improvements Are Different!!;
Placed in Service;
Summary 179-The 'Surgical Approach';
Flexibility to Change;
Planning Freezing Deductions' Active' Business Income;
Freeze and Thaw Initial 179 Election, Then Revoke 179
Thaw and Freeze Bonus first, Then Late 179 Election
QBID the 20% Pass Through Deduction;
Roles, Fast Write Off Rules, Special Roles Played by 179, Bonus and Deminimis;
179 and Gain on Sale
1245 and 1250 Depreciation Recapture;
Deminimis 'Recapture';
Caution:Trap! 'Phantom Income'
Bonus vs.179 vs. Deminimis: Who Wins? and When?;
Slowing Depreciation Down.
Upon completing this course, you should be able to:
Determine the best depreciation method for real estate improvements;
Determine which cost recovery method is best in specific client situations;
Apply the new rules for de minimis expensing updated for affects of the Tax Cuts and Jobs Act;
Apply the new rules for expensing real property under the TCJA;
Review the depreciation recapture rules that apply to bonus depreciation, 179 and the de minimis rules;
Determine when a rapid method of cost recovery shouldn't be used;
Recognize effective years for Qualified property placed into service is not eligible for bonus depreciation based on the new TCJA provisions;
Identify the maximum depreciation (not including bonus) for passenger automobiles assuming qualified business use in the second taxable year after 12/31/2017;
Differentiate following types of property and related treatment under Section 179 remain unchanged under the TCJA;
Identify the maximum Section 179 expense amount for 2018 based on the revised provisions from TCJA;
Recognize components which would be eligible for Section 179 deduction;
Differentiate statements with respect to de minimis rules;
Recognize which type of property is considered placed in service when paid or incurred;
Recognize which type of property is considered placed in service when work is completed;
Describe the surgical approach to tax planning;
Identify how freezing deductions and active business income, the active business income limit applies;
Identify a characteristic of the freeze and thaw method;
Differentiate between bonus, Section 179, and de minimis;
Recognize which items are eligible for bonus depreciation in various situations;
Identify which allocation methods/approaches uses little to no documentation and is based on a preparer's experience;
Recognize bonus and Section 280(F) interaction;
Identify which type of properties eligibility for Section 179 did not change as a result of the TCJA;
Describe the amount Section 179 expense phaseout begins starting in 2018;
Identify the de minimis election per invoice for taxpayers with or without audited financial statements;
Describe the type of property considered placed in service when it is in the taxpayer's possession;
Identify the correct sequence for optimal basis reduction;
Recognize which form instructions should be followed when applying the surgical approach and electing out of bonus depreciation;
Differentiate which types of methods for QIP and recapture allocates the selling price based upon the adjusted basis.
$ 85.00
Course is unavailable for purchase.
NASBA Field of Study
Taxes
Level
Intermediate
CPE Credits
4.0
Prerequisites
A basic understanding of tax depreciation methods.
Last Updated
10/17/2018
14341
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