CCH Learning Center

Writing Off Business Assets: Changing Rules

Several recent developments impact business asset writeoff rules. Skillful application of these rules can help a business maximize its writeoff of assets in the year of purchase creating higher current deductions and greater tax savings. This course will review these developments and help practitioners correctly apply the writeoffs.

Developments reviewed include:

• New IRS regulations on the capitalization of intangibles, Section 179 expensing, and bonus depreciation;

• The expiration of bonus depreciation in 2005 and a sharp decrease in the Section 179 amount after 2005;

• The recapture of deductions for Section 179 expensing and bonus depreciation; and

• The use of cost segregation to obtain higher writeoffs for building components.