John Alfonsi Teaches Webinar on Calculating Depreciation Recapture
On May 25, 2022 Cendrowski Corporate Advisors Managing Director John Alfonsi will teach a Strafford webinar, “Calculating Depreciation Recapture Under IRC 1245 and 1250: Minimizing Tax Through Transaction Planning.”
The webinar will be held from 1:00 PM to 2:50 PM EDT. Click here to register. Strafford is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This course will provide an in-depth explanation of depreciation recapture rules, focusing on the technical calculations and planning opportunities of the recapture provisions. The speakers will explore IRC 1245 and 1250, which set out the rules for recapture based on various types of assets.
Depreciation recapture is the IRS process of recharacterizing tax on a gain that had previously provided a deduction against ordinary income. Business taxpayers experience unexpected income tax liabilities by failing to account for depreciation recapture provisions when selling business assets.
Depreciation recapture under IRC Sections 1245 and 1250 applies to sales of depreciable real estate, business tangible personal property, even the sale of a business. Tax advisers need to understand the recapture rules and to be able to advise decision makers of the tax effects of depreciation recapture on gains from asset sales in order to understand the tax consequences of the sale of capital assets.
By carefully considering the recapture rules, tax advisers can reduce the negative impact of depreciation recapture through planning. In any tax reduction scenario, the proper calculation of the recapture provisions is critical to minimizing taxes on business asset sale gains through the timing of transactions.
Additional faculty includes Charles Mullen, Chairman, Apple Growth Partners.