Depreciation for Accounting and Tax Purposes (Completed)

Nearly all businesses invest in assets that are used in operating the business. The cost of long-lived assets is spread over the useful life of the asset and expensed against revenue for both accounting and tax purposes through a process called depreciation. However, the methods allowed for tax purposes and those allowed for financial reporting purposes are quite different. There are also conceptual differences between Generally Accepted Accounting Principles for the United States (GAAP) and International Financial Reporting Standards (IFRS).

This webinar will cover the various methods of depreciation, which are allowed for tax purposes and which are allowed under the accounting standards and why businesses must keep more than one set of books when it comes to accounting for fixed assets.

Who Should Attend
Business owners and executives, Controllers, Accounting Executives and Managers, Cost and Managerial Accountants, Financial Accountants, Internal Auditors, IT Professionals, Risk Officers Audit Committee Members, Public Accountants, Enrolled Agents, and Tax Professionals.

Topics Covered

• Definitions
• Factors in computing depreciation: Cost, Useful life, Depreciation method, Salvage value
• Accounting methods: Straight line, Units of production, Sum of the years' digits, Declining balance; GAAP and IFRS
• Tax methods: MACRS, ACRS, Section 179, Bonus depreciation, Intangible assets; Need to know changes to depreciation under the JCTA
• Other issues: AMT, Listed property, Depreciation recapture

Learning Objectives

• Identify depreciable property by which property is depreciable and which costs must be included (capitalized)
• Identify the information required to use a particular method
• Recognize tax methods used to accelerate cost recovery, including bonus depreciation and section 179 first year expensing
• Describe how to track and reconcile depreciation expense and book value when more than one method is required

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None