Capitalized Costs and Depreciation

Gain a comprehensive and practical understanding of the IRS Cost and Repair Regulations dealing with property transactions from acquisition to disposition. This CPE course analyses the rules for depreciation, amortization, like-kind exchanges, involuntary conversions and business property sales. It also covers important property-related timing issues and planning opportunities that can lead to significant tax savings.


  • Recall the initial tax basis and adjusted tax basis of business property
  • Identify purchase price in a lump-sum purchase of business assets
  • Identify the tax basis of self-constructed assets
  • Recall the tax treatment of expenditures for materials and supplies
  • Distinguish between deductible repairs and capitalized improvements
  • Recall recent changes in the tax rules to classification of expenditures as materials, supplies, repairs, and improvements
  • Recall the fundamentals of MACRS depreciation
  • Recognize eligibility for Section 179 immediate expensing
  • Recognize which assets are considered listed property
  • Identify common amortizable intangibles
  • Recognize the types of purchased intangible costs that must be capitalized
  • Distinguish how to allocate purchase price to intangible assets under the residual method
  • Recall how to depreciate improvements to leased tangible property
  • Identify self-created intangibles that must be capitalized


  • 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, Bonus
  • Intangible Assets and Amortization
  • Organization and Start-Up Costs

Additional Information

Designed For

Designed for Beginning Staff . The Tax Staff Essentials courses establish a strong set of core skills necessary for junior staff growth. Tax Staff with 0-1 year experience.


American Institute of CPAs

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