[WEB] Expense vs. Capitalize - Getting It Right for Taxes
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.
- 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
- Accounting methods
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 Section 179 expensing treatment
- Applying cost recovery rules
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.
Early Registration Member Fee
Applicable if you are a HSCPA member in good standing and register by June 14, 2022.
Applicable if you are a HSCPA member in good standing.
Early Registration Non-Member Fee
Applicable if you are not a HSCPA and register by June 14, 2022.
Applicable if you are not a HSCPA member.