November 11, 2021 8:00am – 3:30pm Map & Directions 602-252-4144

Expense vs. Capitalize-Getting it Right for Taxes

Online registrations are currently closed, please call (602) 324-6847 for additional registration options

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.

Location

ASCPA Learning Center
4801 E Washington St Ste 180
Phoenix, AZ 85034-2040

Registration Time

7:30am

Fees

Member:
$300
Non-CPA Staff:
$400
Non-CPA Staff (100% club):
$300
Non-CPA Staff (sole proprietor):
$300
Non-Member:
$400
Phoenix
Taxation
8

Objectives

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.

Course Level

Intermediate

Vendor

Kaplan Development Group More With This Vendor

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.

Prerequisites

None.

Event Leaders

Zollars, Edward K.

Rating: 4.85


Edward K. Zollars, CPA, is in public practice in Phoenix, Arizona as a partner with the firm of Thomas, Zollars & Lynch, Ltd. He has been in practice for more than 35 years, specializing in tax issues for closely held businesses and individuals.

Zollars has been professionally involved with both tax and technology issues, combining the two disciplines in producing the Current Federal Tax Development Update Podcast and website, dealing with current tax issues. He has been a member of AICPA Tax Division Committees focusing on tax and technology issues and was the Tax Section’s representative on three occasions to the AICPA’s Top Ten Technologies project. He is also a member of the Phoenix Tax Workshop’s Advisory Committee and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs. Zollars was selected as a Life Member by the Arizona Society of CPAs in May, 2010.

Along with writing, editing and presenting courses for Loscalzo Institute, Zollars has written articles published in Practical Tax Strategies and the Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups, and served as systems operator on the AICPA’s Accountants Forum in the mid-1990s.

He has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state societies of CPAs.


More With Zollars, Edward K.

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.

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