Course Description

Depreciation can be a very large and important deduction for owners of rental properties and small businesses. It can allow these taxpayers to be cash flow positive while declaring significantly less taxable income. However, this gets tricky. Are there elections we can make that may help us in later tax years? When does depreciation need to be recaptured? And when can missed depreciation deductions be made up? Using easy to follow examples and discussion, we will explore these issues and many others, so that we can get the best results possible for this unique group of clients! 

Learning Objectives

  • Recognize the different accelerated depreciation methods available and when they can be used.

  • State how depreciation recapture differs under Sec 1245, Sec 1250, and Sec 291.

  • Identify how the Sec 1237 safe harbor may be used to avoid ordinary income tax treatment on divided land parcel sales

Additional Required Materials

  • Level: Overview

  • Field of Study: Taxes (NASBA); Tax Planning (CFP); Federal Taxation (IRS)

  • Who Should Attend: Tax and financial advisors who have clients who have clients with small businesses and rental property.

  • Required Knowledge: Basic understanding of tax rules for the taxation of small businesses and rental property.

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.