Depreciation: MACRS

OVERVIEW

COURSE DESCRIPTION: This course will allow a user to gain a thorough, practical understanding of ACRS, MACRS, and ADS. Follow examples calculating alternative minimum tax depreciation and luxury automobile caps on annual cost recovery.

EFFECTIVE DATE: October 2008

RECOMMENDED FOR: Users of the Quickfinder® Depreciation Handbook

PREREQUISITE/ADVANCE PREPARATION:None

CPE CREDIT: 8 QAS Hours, 8 Registry Hours, 8 CTEC Federal Hours, and 0 CTEC California Hours

Check with the state board of accountancy in the state in which you are licensed to determine if they participate in the QAS program and allow QAS CPE credit hours. Alternatively, you may visit the NASBA website at www.nasba.org for a listing of states that accept QAS hours. For those states that do not accept QAS hours, Registry hours should be reported.

Enrolled Agents: This course is designed to enhance
professional knowledge for Enrolled Agents. Gear Up is a
qualified CPE Sponsor for Enrolled Agents as required by
Circular 230 Section 10.6(g)(2)(ii).

FIELD OF STUDY: Taxes

EXPIRATION DATE: Postmarked by November 30, 2009

KNOWLEDGE LEVEL: Basic

LEARNING OBJECTIVES
Lesson 1 - Depreciation of Tangibles

• Describe costs that are capitalized and recovered through depreciation or amortization.
• Calculate depreciation allowed or allowable.

Lesson 2 - MACRS: Recovery Periods and Modifying Conventions

• Describe recovery periods and modifying conventions.
• Apply modifying conventions.

Lesson 3 - Allowable Depreciation Methods and the IRS Optional Tables

• Identify allowable depreciation methods.
• Use the IRS optional tables and those allowed in subsequent years.

Lesson 4 - More on Using the IRS Optional Tables

• Use the IRS optional tables with early disposition of real, mid-quarter, and half-year properties.
• Utilize a general asset account, calculate gain or loss on dispositions, and properly delete items from a GAA.

Lesson 5 - Alternative Depreciation System and Alternative Minimum Tax

• Describe property excluded from MACRS.
• Compute depreciation for the Alternative Minimum Tax (AMT) and Alternative Depreciation System (ADS).

Lesson 6 - Short Tax Years and IRC Section 179

• Identify MACRS deductions in a short tax year.
• Describe IRC Section 179 property.

Lesson 7 - Adjustments to Basis, Luxury (Passenger) Automobiles, Light Vans and Trucks, Listed Property and Changes in Use

• Identify the limitations on cost recovery, passenger automobile and light vans and trucks.
• Define listed property.

Lesson 8 - Amortization of Intangibles

• Compute amortization of start-up and organizational costs and intangible property in general.
• Describe IRC Section 197 intangibles.

TO COMPLETE THE LEARNING PROCESS
Send your completed Examination for CPE Credit Answer Sheet Course Evaluation, and payment to:
Thomson Reuters
DDET08 Self-Study CPE
P.O. Box 966
Fort Worth, TX 76101

See the test instructions included with the course materials for more information.

ADMINISTRATIVE POLICIES
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and your questions or concerns will be promptly addressed.