Gain a better understanding of the everyday application of tax depreciation concepts.
This presentation will provide information on bonus depreciation and other special depreciation issues. John Manolos will clarify when these topics are applicable and provide guidance on how to tax plan accordingly. A brief discussion of IRC Section 179 will also be provided.
Learning Objectives
- You will be able to describe bonus depreciation periods and requirements.
- You will be able to discuss form 3115 and 481(a) adjustments.
- You will be able to explain Section 179.
- You will be able to identify how to tax plan accordingly.
Agenda
New Bonus Depreciation Timeline and Applicable Periods and Requirements
- 50% Bonus Before 9/27/2017
- 100% Bonus Beginning on or After 9/28/2017, Expires 12/31/2022
- 80% Bonus 1/1/2023 - 12/31/2023
The Definition of Qualified Improvement Property
- QIP Means Any Improvement to an Interior Portion of a Building That Is Nonresidential Real Property
- QIP Does Not Include Any Improvement Related to the Enlargement of a Building, Elevators or Escalators, or the Internal Structural Framework of the Building
Tax Reform Changes, Self-Constructed Property Rules
- Long Production Period Property (LPPP)
- Recovery Period of at Least 10 Years or Is Transportation Property
- Subject to 263A
- With an Estimated Production Period Exceeding 1 Year and Production Cost Exceeding $1M
- Must Meet Acquired and PISD Rules
- Property Is Acquired When Taxpayer Begins Manufacturing, Constructing, or Producing the Property
- Optional Safe Harbor - 10% of Total Construction Cost Has Been Incurred (‘Physical Work of a Significant Nature’ Completed)
Acquired Property Requirements
- Without Regard to a Lease
- Placed in Service More Than 3 Years After the Date the Building Was First Placed in Service or
- Restaurant Building
How It Interacts With Cost Segregation
- Personal Property Assets Such as 5 or 7-Year Will Be Eligible for a 100% or 80% Bonus
- 15-Year Land Improvements Will Be Eligible for a 100% or 80% Bonus
- Look-Back Studies Will Be Eligible for Bonus, Utilize Form 3115 and 481(a) in Lieu of Amending TRs
Speakers
John Manolos,
KBKG- Senior Manager – Cost Segregation
- Over 15 years of tax experience
- Specializes in fixed asset consulting including cost segregation studies, repair and maintenance expense analyses, and other tax advisory services specific to cost recovery in the real estate industry
- Is an Enrolled Agent and is enrolled to practice before the Internal Revenue Service
- Member of the American Society of Cost Segregation Professionals
- Master’s degree in taxation, Golden Gate University; B.S. degree in engineering technology, California State University, Pomona
Who Should Attend
This live webinar is designed for accountants, CFOs, controllers, accounts payable professionals, tax managers, presidents, vice presidents, business owners and managers, finance directors, bookkeepers, and enrolled agents.
