Depreciation Rules for Bonus and Section 179 Expensing

Overview

The Tax Cuts and Jobs Act of 2017 has had a tremendous impact on commercial real estate, including liberalizing the depreciation provisions. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) included several provisions that allow taxpayers to revisit projects completed in earlier, more profitable years, and generate even more value. In this course, we will explore the impact of these important laws on commercial real estate owners and delve into what Accounting and Financial Professionals need to know. We’ll also examine these opportunities to “turn back the clock,” including the retroactive correction of QIP’s recovery period and the option to revoke electing-out of the business interest limitation. Finally, we will review other strategies that are crucial parts of a comprehensive tax plan this year and will discuss a strategic hierarchy for employing those strategies most successfully. Relevant Rev. Procs. and multiple real-life case studies will be reviewed.

Objectives

Understand the crucial provisions of the PATH Act, TCJA, and CARES Act

Explain the implications of the CARES Act's correction of QIP recovery period

Understand the value of QIP as an indicator of Section 179-eligible property.

Explain how strategies like Section 179 expensing, bonus depreciation, the tangible property regulations (TPRs), and Energy Incentives all contribute to a modern comprehensive tax strategy

Understand the significance of the business deduction limitation and why taxpayers may choose to revisit that election under Section 163(j)

Recognize how previously completed projects may be leveraged for additional value

Use various tax strategies in a strategic manner to maximize cash flow

Highlights

Bonus depreciation for acquisitions and construction

History of qualified property categories and QIP

The CARES Act and related Rev. Procs.

Section 179 expensing

Energy incentives

The tangible property regulations

1031 exchanges

Strategic hierarchy

Designed For

Tax practitioners who anticipate advising clients with respect to depreciation of business property

Prerequisites

A basic understanding of the tax rules relating to individual income tax

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Michael Frost, Surgent McCoy CPE, LLC

Leader Bios

Michael Frost, Surgent McCoy CPE, LLC

Mike Frost, CPA, of Jacksonville, Alabama, provides tax consulting, continuing education, and motivational speaking services through his company, Mike Frost Enterprises. Mike is a former shareholder of MDA Professional Group, PC, where he managed the tax department of the Albertville office. Mike has 31 years of experience in public accounting, including but not limited to: Business and individual income tax preparation and planning; mergers and acquisitions; estate, gift, and trust tax preparation; small business consulting; Medicare planning and other elder care; audit representation; and religious groups and clergy. Mike has conducted CPE engagements and seminars throughout the United States and has served as technical advisor for tax articles in The Sand Mountain Reporter, a local newspaper. Mike has been a featured presenter at the Alabama Society of CPAs Annual Meeting and the Federal Tax Clinic held annually at the University of Alabama in Tuscaloosa. Mike graduated with “high honors and distinction” from Jacksonville State University with a major in accounting, a minor in finance, and a 4.0 GPA. He is a member of the American Institute of Certified Public Accountants and the Alabama Society of Certified Public Accountants. In addition, he is a graduate of the Tax Planning and Advising for Closely Held Businesses Certificate of Educational Achievement Program sponsored by the AICPA.

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