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CPE Self-Study

Capitalized Costs and Depreciation - Tax Staff Essentials

  • $139.00-$179.00
    Capitalized Costs and Depreciation - Tax Staff Essentials Online Access Product #: 157593
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    Non-Member: $179.00
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From acquisition to disposition, capitalized costs and depreciation can be challenging to understand. Developed to help you gain significant tax savings for your clients, this course offers a comprehensive and practical understanding of the IRS cost and repair regulations dealing with property transactions.

Also analysed in this course are the rules for depreciation, amortization, like-kind exchanges, involuntary conversions, business property sales and important property-related timing issues and planning opportunities.

Learning Objectives

This course will prepare you to do the following:

  • Recognize the basic differences between the various types of partnerships and LLCs.
  • Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
  • Determine how partnerships and LLCs opting to be treated as partnerships report their federal taxable income to the IRS and to investors.
  • Indicate how investors in partnerships and LLCs report their shares of entity income and loss for tax purposes, and how those shares affect the basis of their investments in the entity.
  • Calculate the tax basis of assets transferred to a partnership or LLC at formation.
  • Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
  • Identify the required tax year for a partnership or LLC.
  • Determine the tax consequences associated with the exchange of an interest in a partnership or LLC for services.
  • Distinguish between current and liquidating distributions.
  • Determine the basis in the investor's hands of property received as a distribution from a partnership or LLC.
  • Calculate the partner's or member's remaining basis in his or her interest following a distribution of cash or property from the partnership or LLC.
  • Indicate the effects of liabilities assumed by a partner or LLC member in connection with a property distribution.
  • Determine the proper tax treatment of retirement payments to a partner.
  • Determine whether payments to a partner will be treated as guaranteed payments, distributive shares, or payments to a third party.
  • Identify the tax treatment of payments to a partner in the partner's capacity as a third party.
  • Recognize the tax treatment, both at the partner and the partnership level, of guaranteed payments to a partner.
  • Calculate the amount of the guaranteed payment when the partner is to receive the lesser of a fixed dollar amount or a fixed percentage of partnership income.
  • Indicate the correct treatment of partnership income by a partner for self-employment tax purposes.
  • Determine whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations, and when they will not be recognized by the IRS.
  • Distinguish the difference between "book" allocations required under Section 704(b) and "tax" allocations required under Section 704(c).
  • Identify the potential economic consequences to a partner or LLC member of a special allocation.
  • Recognize the relationship between partnership and LLC allocations of profit and loss and the allocation of the risks and rewards of entity operations.
  • Identify the types of special allocations that are allowed in a family partnership context and those that are not.

Key Topics

  • Tax basis of property acquisitions
  • Initial basis of property acquired in an exchange transaction
  • Materials, supplies, repairs, and improvements
  • Accounting method changes
  • Depreciation: MACRS, Section 179, bonus
  • Intangible assets and amortization
  • Organization and start-up costs

Who Will Benefit?

  • Public accounting staff and senior associates, tax professionals in company finance or tax departments

Discounts

Tax Section Members Receive Additional Savings!

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the Tax Section.

Table of Contents

System Requirements

About the Authors

Dr. Shelley Rhoades-Catanach, Ph.D., CPA., CPA

Dr. Shelley Rhoades-Catanach is a member of the Financial Services faculty at Villanova University School of Business, where she teaches a variety of tax courses in Villanova's undergraduate, MBA, Master of Accountancy, and Master of Taxation programs. Prior to joining Villanova, she taught at Washington University in St. Louis. She has also served as a visiting faculty member at Darden Graduate School at the University of Virginia and at INSEAD in Fontainebleau, France. Shelley obtained her undergraduate degree in accounting from the University of Nebraska and received her Ph.D. in accounting from the University of Texas at Austin.

Shelley's research applies game-theoretic modeling techniques to examine the impact of taxes on strategic decision making in such areas as tax reporting and auditing, changes in tax policy, taxpayer rights legislation, and the impact of state taxation on firm location and investment decisions. She has published articles in The Accounting Review, Research in Accounting Studies, Journal of the American Taxation Association, Issues in Accounting Education, Journal of Accounting Education, Tax Advisor, and Journal of Accountancy. She is also a co-author of two textbooks: Principles of Taxation for Business and Investment Planning and Advanced Strategies in Taxation.

Prior to entering academia, Shelley spent seven years at Arthur Andersen as a tax professional. She is a CPA and a member of the American Institute of CPAs, the American Accounting Association, and the American Taxation Association. She currently serves as President of the American Taxation Association, the tax section of the American Accounting Association.

About the Publisher

AICPA

About the AICPA The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 412,000 members in 144 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialty credentials for CPAs who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation, which sets a new standard for global recognition of management accounting.

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