EA Exam Prep Part 1: Depreciation (Currently Unavailable)

Author: Eva Rosenberg

This is the twelfth class of the EA Exam Prep Part 1 series. Don’t be depressed over depreciation. Write off those fears with guidance from TaxMama®. Begin with an understanding of how and why depreciation was created. Learn about the different depreciation methods and when to use each. Recognize the difference between depreciated assets and amortized assets. Learn how to complete Form 4562. Gain insight of Section 179, and more.

Publication Date: June 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about income tax preparation– and more. Excellent training for staff working in tax offices, accounting practices, and corporate settings, as well as independent bookkeepers. This course provides an in-depth look at depreciation. It is especially helpful to those with no hands-on experience preparing tax returns – and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• Depreciation methods
• Classes of assets
• Recovery periods
• Section 179
• Modified Accelerated Cost Recovery System (MACRS)
• General Depreciation System
• Alternative Depreciation System
• Mid-Month, Mid-Quarter, and Half-Year conventions
• Bonus depreciation
• Listed property
• Start-up and organizational costs
• Depreciation of real estate
• Depreciation limits for passenger vehicles
• Depreciation allowed vs. allowable
• How to correct missed depreciation
• Section 481
• Form 4562
• Qualified improvement property
• Leased property
• Life tenants

Learning Objectives

• Recognize how to determine depreciable vs. amortizable assets
• Calculate the depreciable basis of assets
• Recognize how to properly classify asset depreciation methods
• Recognize how to properly determine asset recovery periods
• Recognize when to use Section 179
• Identify Section 179 recapture rules
• Recognize the effects of Section 179 on pass-through entities
• Identify the limits for passenger vehicles
• Recognize how to properly correct missing depreciation
• Identify Qualified Improvement Property rules
• Identify how and when to claim bonus depreciation
• Identify how to handle leased property
• Recognize when using the Alternative Depreciation System (ADS) is mandated
• Identify how to appropriately record listed property

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None