Depreciation, amortization, and capitalization all play an essential role in accurate tax reporting.
Learning Objectives
- Learning Outcomes
- Recall the initial tax basis of business property, including those purchased and acquired in an exchange transaction.
- Identify the tax basis of self-constructed assets.
- Recall the tax treatment of expenditures for materials and supplies.
- Distinguish between deductible and capitalized expenditures related to repairs and improvements.
- Recall the fundamentals of modified accelerated cost recovery system (MACRS) depreciation.
- Recognize which assets are considered listed property.
- Identify intangibles that are subject to capitalization and amortization.
