Depreciation Made Easy

Lecture Content

Depreciation calculations demand the application of numerous rules including MACRS, limits on autos, listed property and asset life. This lecture teaches students the methods used to calculate MACRS depreciation and application of various limits and rules affecting depreciation calculations.

Topics Covered

* Definition of tangible and intangible property types
* The difference between depreciation and amortization
* What property can be depreciated
* Depreciation systems
* MACRS (Modified Accelerated Cost Recovery System)
* ADS (Alternative Depreciation System)
* MACRS class asset lives and recovery periods
* Single purpose agricultural and horticultural structures
* Computer software and other intangible property
* Depreciation conventions
* Depreciation methods
* Straight-line and double declining balance methods
* MACRS tables
* Depreciation schedule – how to prepare
* Form 4562 filing requirements
* Bonus depreciation
* Section 179 deduction
* What property can and cannot be expensed
* Qualified real property
* Listed property – rules and limits on deductions
* Limits on automobiles, trucks, vans and SUVs
* Leased vehicle inclusion amounts
* Standard mileage allowance – depreciation component
* Inclusion amounts
* Classification of property
* Amortization rules relating to intangible assets
* Start-up costs
* Preparation of Form 4562 Depreciation and Amortization – line-by-line instructions
* Deduction and capitalization of expenses related to tangible property

Terms of Use or Enrollment

Pacific Northwest Tax School’s course materials and teaching techniques are valuable proprietary information of Pacific Northwest Tax School, and all such information is subject to copyright, including written, recorded, internet based as well as all other electronic media. Each Student agrees that she/he will use the information only for purposes of education and training; and as a condition of enrollment, that they will not disseminate the information to any third party and will treat the materials as confidential information of Pacific Northwest Tax School. As a condition of enrollment, Students pledge not use any information in any competitive fashion, including to create or derive competitive materials. Students further agree that any breach of these terms and conditions shall cause the school irreparable harm, entitling Pacific Northwest Tax School to injunctive relief, as well as any other remedy that may be available at law or equity. Students shall have twelve months from date of enrollment in any continuing education course, to successfully complete the course and receive their Certificate of Completion.

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