Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Depreciation, Repairs and Fixed Assets: Tax Considerations (DRFA)

(Updated for the Tax Cuts and Jobs Act) 8-Hour Program

WHY ATTEND THIS COURSE?

Is an expenditure associated with tangible property deductible or must it be capitalized? Learn the rules for treatment of amounts paid to acquire, produce, repair, or improve tangible property and proper accounting for dispositions of property subject to depreciation. The capitalization regulations provide objective standards and bright-line rules intended to simplify compliance with the capitalization provisions contained in section 263(a) of the Internal Revenue Code. This program highlights issues involving what must be capitalized, what can be treated as a repair, and items related to depreciation of fixed assets.

DESIGNED FOR...

CPAs who advise clients and/or prepare tax returns dealing with expenditures to repair, improve, or acquire tangible property. May also be suitable for public practice.

OBJECTIVE

Participants will be able to:

  • Apply capitalization rules in general
  • Identify exceptions for materials and supplies
  • Account for costs associated with rotable spare parts
  • Apply “de minimis” rules for entities with and without an “applicable financial statement”
  • Determine amounts considered “spent to acquire tangible property”
  • Identify improvements to tangible property
    • Unit of property definitions, including special rules applicable to real property
    • Leased property rules for lessees and lessors
    • Routine maintenance safe harbors
  • Determine what is a “betterment” of property
  • Recognize and capture costs of restoration of property
  • Definition of adapting a property to a new or different use
  • Determining property that qualifies for §179 expensing treatment
  • Applying cost recovery rules

MAJOR SUBJECTS

  • Changes to bonus depreciation provisions enacted as part of the Tax Cuts and Jobs Act
  • Regulations under Code Sections 162, 167, 168, 263(a) and 263A
  • Elections dealing with fixed assets including
  • De minimis rules
  • Section 179 expensing
  • Small taxpayer real estate maintenance rules
  • Determination of depreciable lives and methods
  • Understanding when an asset is placed in service for depreciation purposes

COURSE ACRONYM: DRFA

PRESENTATION METHOD: Group-live

LEVEL OF KNOWLEDGE: Intermediate

PREREQUISITES:

  • None

ADVANCE PREPARATION: None

FIELD OF STUDY: Taxes/General Taxation

RECOMMENDED CPE CREDIT: 8 hours


CPE Sponsor icon

SmartPros®, A Kaplan Company and Loscalzo Institute, A Kaplan Company are registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.