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
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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