- NY Credits : 3.0
- TX Credits : 3.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 3.0
This course discusses the most recent regulations regarding deduction and capitalization of expenditures related to tangible property. The first chapter discusses distinguishing between incidental materials and supplies, non-incidental materials and supplies, and those used to improve property. This chapter will then discuss the appropriate treatment of rotable and temporary spare parts, using case studies to illustrate key elements. The second chapter discusses the rules of capitalization under Section 263(a) and provides an overview of the de minimis provision and discusses applying regulations regarding determination of the unit of property. It goes on to apply these rules to improvements, and discusses the distinction between improvement and routine maintenance. As an intermediate level course, this course is most beneficial for professionals with a detailed knowledge in capitalization of tangible assets regulations and/or experience at a mid-level position within an organization with operational or supervisory responsibilities, or both. This course has been updated to include the relevant tax provisions of the Tax Cuts and Jobs Act of 2017.
Upon successful completion of this course, the user should be able to:
identify the differences between materials and supplies and other assets;
recognize the proper accounting treatment for non-incidental materials and supplies;
identify the proper accounting treatment for rotable parts, selling expenses, defense of title, and routine maintenance; and
identify a unit of property.