Depreciation, Amortization, and Property Transfers: Issues and Strategies, 2015 Edition
Depreciation represents an annual income tax deduction that allows for recovery of the cost or other basis of certain property over time. It is an allowance for the wear and tear, age, deterioration, or obsolescence of the property. Depreciation, Amortization, and Property Transfers: Issues and Strategies provides an in-depth analysis of the complex maze of rules addressing depreciation, amortization, and the sale of property-- with an emphasis on identifying unique planning opportunities and pitfalls. It covers critical areas including cost segregation, repairs, capital expenditures, and investor real estate holdings, as well as recent cases and rulings involving depreciation and amortization issues and how they impact clients, along with useful planning opportunities.
Recent changes to Section 179 and “bonus” depreciation make understanding the issues and planning for depreciation deductions more important now than ever!
Major topics covered include:
- How to handle depreciation on purchases and trade-ins of business vehicles
- Using cost segregation studies to dramatically enhance write-offs
- AMT depreciation adjustments and how to avoid them
- Accounting for a change in use in the asset
- The increased §179 expense election and how to maximize its use
- How to calculate depreciation in the start-up of a business
- How to handle software and website costs
- Write-offs for retail, restaurant and personal service industries
- The new repair regulations
This guide also covers advanced depreciation issues, including corporate liquidations, §754 basis adjustments, transfers to/from trusts, tax-deferred exchanges, personal property converted to business property, and more, including:
- Depreciation recapture
- Capitalizing "repairs" vs. writing them off immediately
- Small Business Jobs Act Changes
- §168(i)(7) and Tax-deferred Exchanges
- Capitalization Change in Accounting Method (CAM)
- 5- or 7-Year MACRS Property vs. 15-Year Land Improvements
- Unrecaptured §1250 Gain Treatment
- Classification of Mixed-Use Structures
- MACRS 27.5-Year Classification
- And more!
As a CPA in industry or public practice, you need a thorough grasp of this important area of tax law. Written in a very practical format, this guide includes many examples and charts to illustrate how to maximize tax savings for your company or your clients.