Depreciation, Amortization, and Property Transfers: Issues and Strategies

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.

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:

• Recent cases and rulings involving depreciation and amortization issues and how they impact clients, along with useful planning opportunities
• Correctly handling 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
• Detailed coverage of the greatly increased §179 expense election and how to maximize its use; when to use it; what properties qualify
• How to calculate depreciation in a short tax year and upon the start-up of a business
• Understanding §197 amortization issues; how to handle software and website costs
• Correctly handling depreciation write-offs for retail, restaurant and personal service industries; recent tax law changes in the area of "distributive trades and services"
• Sale of property and the depreciation recapture rules (§§1245, 1250, unrecognized §1250 gain for real estate, §291); goodwill write-offs need to be recaptured
• Capitalizing "repairs" or writing them off  immediately
• Advanced depreciation issues, corporate liquidation, §754 basis adjustments, transfer to/from trusts, tax-deferred exchanges, personal property converted to business property, 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.

Note: This product is an electronic download file that will be accessible immediately after completing your purchase. Access to this file – from the My Download page – expires 90 days from purchase date.

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