Depreciation Calculations

Publisher
WiseGuides, Inc.
2796 Greenspire Ln
Akron, Oh 44333
Copyright © 2010

Field of Study: Taxes
Level: Basic
Recommended CPE Credit 6 hours
Prerequisites: None
Advanced Preparation: None
Type of Delivery: Self-Study
Expiration: Course expires 1 year after purchase
Course Update: April, 2010
Accreditation: NASBA, IRS, CTEC, OTPB
Guarantee/Complaint Resolution

Course Outline


Lesson 1 - Overview of Depreciation
Learning Objectives 1
Introduction
Depreciable Property
Owner of Property
Cooperative Apartments
Property Used In Business
Inventory
Determinable Useful Life
Depreciable Properties
Computer Software
Basis Adjustments
Depreciation Begins and Ends
Retired Property
Can You Use MACRS
Property Owned or Used in 1986
Intangible Property
Income Forecast Method
Films, Video Tapes and Recordings
Corporate/Partnership Property
Excluding Property From MACRS
Depreciable Basis
Other Basis
Improvements/Repairs
Form 4562
Correcting Depreciation Deductions
Changing Accounting Method


Lesson 2 - Electing Section 179
Learning Objectives 2
Under Section 179
Eligible Section 179 Property
Tangible Personal Property
Single Purpose Structures
Use of Structure
Acquired for Business Use
Property Acquired by Purchase
Excepted Property
Leased Property
How Much Can You Deduct
Dollar Limit
Reduced Dollar Limit
Enterprise Zone Businesses
Passenger Automobiles
Married Individuals
Business Income Limit
Two Different Limits
Carryover
Partnerships and Partners
Adjustments
S Corporations
Electing Section 179 Deduction
Recapturing the Deduction
Figuring Recapture Amount


Lesson 3 - Special Depreciation Allowance
Learning Objectives 3
Special Allowances
What is Qualified Property
Qualified Zone Property
Liberty Zone Property Tests
Gulf Zone Property
Qualified Leasehold Property
Tests To Be Met
Qualified Recovery Property
Reuse and Recycling
Cellulosic Biofuel
Disaster Assistance Area
Certain Property
Additional Deduction
Elect Not to Claim
Recapturing an Allowance


Lesson 4 - Figuring MACRS Depreciation
Learning Objectives 4
MACRS Depreciation Systems
GDS or ADS
Which Property Class Applies
Qualified Rent-to-Own Property
Rent-To-Own Dealer
Retail Motor Fuels Outlet
Placed-in-Service Date
Basis of MACRS Property
Recovery Periods Under GDS
Other Home Uses
Indian Reservation Property
Not Qualified Indian Property
Recovery Periods Under ADS
Additions and Improvements
Which Convention Applies
Which Depreciation Method
Depreciation Methods for Farms
Electing a Different Method


Lesson 5 - How is MACRS Figured
Learning Objectives 5
Using MACRS Percentage Tables
Rules Covering Use of Tables
Basis Adjustment
Figuring the Unadjusted Basis
Sale or Other Disposition
Without Using Tables
Declining Balance Method
Straight Line Method
Using Applicable Convention
Half-Year Convention
Mid-quarter Convention
Mid-month Convention
Carried-Over-Basis Property
Nontaxable Transfer
Short Tax Year
Using the Convention
First/Last Day of Month
Not First/Last Day of Month
Short Tax Year Property
Before/After Short Year
Using Simplified Method
Using the Allocation Method
Allocation Method - Disposition


Lesson 6 - General Asset Accounts
Learning Objectives 6
Grouping Property
Establishing GAA
Depreciation For a GAA
Disposing of GAA Property
Treatment of Amount Realized
Expensed Costs
Terminating GAA Treatment
Nonrecognition Transactions
Rules for Recipient
Abusive Transactions
Abusive Transaction Gain/Loss
Qualifying Dispositions
Disposition - Property in a GAA
Electing to Use GAA
Revoking GAA Election
Recapture of MACRS


Lesson 7 - Listed Property
Learning Objectives 7
Additional Rules
What is Listed Property?
Other Property
Employee Deduction
Business-Use Requirement
How to Allocate Use
Uses
Qualified Business Use
Investment Use
Excess Depreciation
Lessee's Inclusion Amount
Lease Less Than One Year
Passenger Automobile Limits
Maximum Depreciation Deduction
Electric Vehicles
After Recovery Period
Adequate Records
Timeliness
Business Purpose/Use Supported
Expenditures
Substantial Compliance
Loss of Records
Reporting Listed Property
Employee Vehicle Use


Lesson 8 - ACRS
Learning Objectives 8
What is ACRS
ACRS Defined
Recovery Property
Nonrecovery Property
Figuring ACRS Deduction
ACRS Unadjusted Basis
3-Year Recovery Property
5-Year Recovery Property
10-Year Recovery Property
15-Year Real Property
Low-Income Housing
18-Year Real Property
19-Year Real Property
Recovery Period
Alternate ACRS Method
3-,5-, and 10-Year Property
ACRS 15-Year Real Property
Alternate Periods
Deduction in Short Tax Year
Early Dispositions
Recapturing Depreciation

Course Objectives

Lesson - 1
After completing Lesson 1, you will be able to:
  • Determine when the income forecast method for depreciation can be used
  • Determine when MACRS depreciation is used
  • Figure depreciation using the straight line method
  • Determine when Form 4562 must be filed
Lesson - 2
After completing Lesson 2, you will be able to:
  • Identify when section 179 deduction can be elected
  • Figure a section 179 deduction
  • Figure the dollar limit for the section 179 deduction
  • Determine taxable income for section 179 purposes
  • Apply the recapture rules
Lesson - 3
After completing Lesson 3, you will be able to:
  • Identify the requirements for the special depreciation allowance
  • Figure the basis for MACRS depreciation deduction when electing to claim the section 179 deduction and the special depreciation deduction
  • Identify specified Gulf Opportunity Zone extension property
  • Identify qualified cellulosic biofuel plant property
Lesson - 4
After completing Lesson 4, you will be able to:
  • Identify which property class applies
  • Identify the rules that apply to retail motor fuels outlets
  • Identify recovery periods under GDS
  • Identify which applicable convention must be used
Lesson - 5
After completing Lesson 5, you will be able to:
  • Use the percentage tables for figuring depreciation
  • Figure the depreciation deduction using the declining balance method
  • Figure a short tax year depreciation
Lesson - 6
After completing Lesson 6, you will be able to:
  • Determine which property can be grouped into the same general asset account (GAA)
  • Apply the appropriate rules when disposing of property included in a general asset account
Lesson - 7
After completing Lesson 7, you will be able to:
  • Define "listed property"
  • Apply the business-use requirement rule for listed property
  • Figure the allowable MACRS depreciation deduction for business use of a car
Lesson - 8
After completing Lesson 8, you will be able to:
  • Identify what is included under ACRS property
  • Identify the alternate ACRS method recovery periods