Depreciation is an essential part of preparing business and rental property tax returns, but determining what can be depreciated, when depreciation begins, and which method applies can quickly become complicated.
2026 Depreciation Essentials provides a practical overview of the federal tax rules surrounding depreciable property. The course begins with the fundamentals, including what qualifies as a depreciable asset, when property is considered placed in service, and how basis is determined. Participants will then explore MACRS, class lives, recovery periods, and the conventions used to calculate depreciation deductions.
The course also examines options for accelerating deductions, including 100% bonus depreciation and Section 179, as well as circumstances in which regular MACRS depreciation may be considered instead. Participants will learn about de minimis rules, the distinction between repairs and capital improvements, and special depreciation considerations involving vehicles and other business property.
Finally, the course looks beyond the initial deduction to examine what happens when depreciated property is sold, including the effect of prior depreciation on adjusted basis, taxable gain, and depreciation recapture.
Through practical examples and straightforward explanations, 2026 Depreciation Essentials helps build a stronger understanding of the rules behind depreciation and how they apply to common tax situations.
Learning Objectives
Upon completion of this course, participants will be able to:
- Identify property that may qualify for depreciation.
- Determine when an asset is considered placed in service.
- Explain how basis is determined for depreciable property.
- Identify common MACRS recovery periods and depreciation conventions.
- Explain the basic rules surrounding bonus depreciation and Section 179.
- Distinguish between deductible repairs and capital improvements.
- Recognize depreciation considerations that apply to business vehicles.
- Explain how depreciation can affect adjusted basis and the taxation of property when it is sold.
This course counts for 2 Hours of Federal Tax Law for IRS Continuing Education.
About the presenter:
Jason Dinesen (EA, LPA) is a tax nerd, entrepreneur, tax expert, and a well-known presenter of continuing education courses.
Known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics, and much more.
He has presented dozens of webinars on Form 1099 (for 10 years on this subject!), marriage in the tax code, tax updates, the new Form W-4, payroll updates, filing status, tax credits, corporation and partnership taxation, and other issues relating to the modern-day setting.
Frequently Asked Questions
What is depreciation for tax purposes?
Depreciation allows the cost of certain business and rental property assets to be recovered over time rather than deducted entirely when purchased. Property generally must have a determinable useful life and be expected to last more than one year to be depreciable. Land itself is not depreciable, although certain land improvements may be.
When does depreciation begin?
Depreciation generally begins when property is placed in service, not necessarily when it is purchased. Property is considered placed in service when it is ready and available for its specifically assigned function.
What depreciation topics are covered in this course?
The course covers depreciation fundamentals, MACRS, class lives and recovery periods, depreciation conventions, bonus depreciation, Section 179, placed-in-service rules, de minimis amounts, sales of property, and planning considerations.
Does the course cover 100% bonus depreciation?
Yes. The course discusses 100% bonus depreciation, property eligibility, and the option to elect out of bonus depreciation and use regular MACRS depreciation instead.
Will I learn about Section 179?
Yes. Section 179 is covered as another potential way to expense qualifying property. The course also explores how Section 179 differs from bonus depreciation and discusses property for which Section 179 may be available.
Does the course discuss what happens when depreciated property is sold?
Yes. The course examines how depreciation reduces an asset's adjusted basis and how a later sale can result in taxable gain and depreciation recapture.
