PART IV: Federal Taxation of Property Transactions (Area III)

In this section

• Chapter 12: Basis of Assets
  • Calculation of Original Basis and Adjustments
    Discover how to determine an asset’s original cost basis, including acquisition costs and capital improvements, and learn how to accurately adjust for depreciation and other reductions.
  • Basis of Assets Received by Gift or Inheritance
    Learn the key rules for determining the basis of property acquired via gift or inheritance, including the carryover basis rules, stepped-up basis at death, gift tax implications, and relevant holding periods.
  • Impact of Conversion from Personal to Business Use
    Learn how to determine the basis of property when converting from personal to business use, including the key lower-of-cost-or-FMV rule for depreciation and cost recovery.
  • Special Basis Issues (Wash Sales, Related-Party Transactions)
    Explore in-depth rules and practical applications of basis adjustments in wash sale transactions and related-party dealings. Learn how disallowed losses, partial carryovers, and deferred losses affect tax outcomes, illustrated through examples and case studies.
• Chapter 13: Cost Recovery (Depreciation and Amortization)
  • MACRS, Recovery Periods, and Conventions
    A comprehensive exploration of the Modified Accelerated Cost Recovery System (MACRS), including recovery periods, half-year, mid-quarter, and mid-month conventions, with practical examples and best practices.
  • Section 179 Expensing and Bonus Depreciation
    Maximize your tax benefits with Section 179 expensing and Bonus Depreciation rules. Explore eligibility requirements, annual limits, phase-out thresholds, listed property constraints, and strategic applications.
  • Amortization of Intangibles (Start-Up, Organization, Other)
    Learn how to identify and properly amortize various intangible costs, including start-up and organizational expenditures, under the relevant IRC provisions, typical amortization periods, and special elections.
  • Strategic Implications and Compliance Considerations
    Explore how to optimize cost recovery deductions, coordinate Section 179 with bonus depreciation, and avoid pitfalls to maintain compliance under U.S. tax laws.