Capitalized Costs & Depreciation - Tax Staff Essentials - Society of Louisiana Certified Public Accountants

Overview

Depreciation, amortization, and capitalization all play an essential role in accurate tax reporting.

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 and bonus

Intangible assets and amortization

Organization and startup costs

Research and experimental expenditures

H.R. 1, commonly referred to as OBBBA

None

Public accounting staff and senior associates

Tax professionals in company finance or tax departments

Recall the initial tax basis of business property, including those purchased and acquired in an exchange transaction.
Identify the tax basis of self-constructed assets.
Recall the tax treatment of expenditures for materials and supplies.
Distinguish between deductible and capitalized expenditures related to repairs and improvements.
Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.
Recognize which assets are considered listed property.
Identify intangibles that are subject to capitalization and amortization.