Calculating Depreciation Recapture Under IRC 1245 and 1250: Minimizing Tax Through Transaction Planning
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
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.
Outline
- Depreciation recapture provisions and rules
- Recapture against real estate
- Recapture against business equipment and other assets
- Planning opportunities
- Transaction timing opportunities
- Transaction structure
- Installment sales
- Like-kind (Section 1031) exchanges
- Component allocations
Benefits
The panel will address these and other notable issues:
- Applicable depreciation recapture rules for Sections 1245 and 1250
- The distinction between depreciation recapture and unrecaptured Section 1250 gains
- Preparing calculations and estimates of recapture gains recharacterized as ordinary income or Section 1250 gains
- Planning opportunities to manage and reduce the tax arising from recapture
- Differences in treatment between structuring a business disposition as a stock sale vs. an asset sale
Faculty
John T. Alfonsi, CPA
Managing Director
Cendrowski Corporate Advisors
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience.... | Read More
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience. In the tax planning and consulting arena, he works primarily with partnerships and with private equity, venture capital and hedge funds.
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Charles (Chuck) Mullen, CPA, CMA, CGMA, MTax
Chairman
Apple Growth Partners
Mr. Mullen, CPA, CMA, CGMA, MTax, is the Chairman of Apple Growth Partners (AGP), a regional CPA and Business Advisory... | Read More
Mr. Mullen, CPA, CMA, CGMA, MTax, is the Chairman of Apple Growth Partners (AGP), a regional CPA and Business Advisory firm headquartered in Northeast Ohio. In addition to his role as managing partner, he provides tax and accounting services to closely held companies and individuals, and assists with financial and strategic planning. Mr. Mullen’s extensive experience with privately held companies consists of auto dealership clients, providing tax structure advice for mergers and acquisitions, succession planning, preparing for sale, and business strategy. A frequently requested public speaker, he has presented at both internal and external events, including the Institute of Management Accountants, The University of Akron's National Tax Conference, the ICA Car Wash Show, and hosts Apple Growth Partners’ weekly business podcast, “Sliced.” Mr. Mullen holds a Bachelor of Science in Accounting and Master of Taxation degree from the University of Akron. Under his leadership, AGP has earned several prestigious regional and national awards recognizing employee culture and the firm has experienced 90% revenue growth during his six-year tenure thus far.
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