Depreciation, Section 179 & Bonus Depreciation

Categories: Federal Tax, IRS CE
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About Course

This self-study continuing education program is designed for tax professionals who prepare business and individual income tax returns involving depreciable property. The course provides a comprehensive review of federal depreciation rules under the Modified Accelerated Cost Recovery System (MACRS), Section 179 expensing, bonus depreciation, and the practical application of Form 4562 — one of the most commonly misapplied forms in tax practice.

Participants will learn to correctly classify depreciable property, apply the appropriate MACRS recovery period and depreciation method, calculate Section 179 deductions including phase-out rules and business income limitations, and apply bonus depreciation rules under current law. The course addresses listed property restrictions, depreciation recapture under Sections 1245 and 1250, and the most common compliance errors practitioners encounter on Form 4562.

Throughout the course, content is grounded in current IRC provisions, Treasury Regulations, and IRS guidance, with practical examples drawn from real-world business tax scenarios involving sole proprietors, partnerships, S corporations, and rental property owners.



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What Will You Learn?

  • Understand MACRS depreciation rules and property classifications
  • Apply Section 179 expensing elections and limitations
  • Calculate bonus depreciation deductions under current federal tax law
  • Identify recovery periods, conventions, and depreciation methods
  • Recognize listed property and luxury automobile limitations
  • Determine adjusted basis and depreciation recapture upon asset disposition
  • Avoid common depreciation reporting errors and compliance issues
  • Complete depreciation-related tax reporting with greater accuracy

Course Content

Module 1 – Depreciation Fundamentals & MACRS
Learn the fundamentals of depreciation, including depreciable basis, placed-in-service requirements, MACRS recovery periods, depreciation methods, and applicable conventions. This module provides the foundation for calculating depreciation on business and rental property under federal tax law.

  • Depreciation Fundamentals & MACRS

Module 2 – Section 179 Expensing
Examine the rules governing Section 179 deductions, including eligible property, deduction limits, phase-out thresholds, business income limitations, carryover provisions, and the interaction between Section 179 and bonus depreciation.

Module 3 – Bonus Depreciation & Listed Property
Review bonus depreciation requirements, qualified property rules, current-law phase-down percentages, and planning considerations. This module also covers listed property restrictions, vehicle depreciation limitations, and required recordkeeping standards.

Module 4 – Form 4562, Recapture & Compliance
Learn how to complete Form 4562 accurately, apply depreciation recapture rules under IRC Sections 1245 and 1250, and identify common depreciation errors. This module also addresses partial dispositions and practical compliance issues frequently encountered in tax practice.

Final Assessment – Depreciation, Section 179 & Bonus Depreciation
This final assessment evaluates the participant’s understanding of MACRS depreciation, Section 179 expensing, bonus depreciation, listed property rules, Form 4562 reporting, depreciation recapture, and common compliance issues. A minimum score of 70% is required to successfully complete the course.

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