[WEB] Expense vs. Capitalize - Getting It Right for Taxes

Description

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.

Highlights

• General rules for expensing vs. capitalizing
• Capital expenditures
• Payments to acquire assets
• Depreciation and section 179 election
• Payments to improve property
• Provisions that override capitalization rules
• Repairs
• Accounting methods

Designed For

CPAs, accountants, and financial professionals 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.