REG Property Transactions, Basis, and Cost Recovery

This part introduces the property framework used throughout REG. The chapters focus on how assets are measured for tax purposes, how their cost is recovered, and why basis and recovery method change the eventual gain, loss, or deduction result.

In This Part

• Asset Basis Rules for REG covers the starting tax measure for property and how basis is established or adjusted.
• Cost Recovery, Depreciation, and Amortization explains how basis is recovered over time.

How to Use This Part

• Read this part before the later individual and entity tax chapters if property issues are a weak point.
• Focus on what changes basis and what changes the timing of recovery.
• Return here whenever a REG miss depends on asset measurement or the tax treatment of recovery.

In this section

• Asset Basis Rules for REG
  REG property-tax coverage for original basis, adjusted basis, gifts, inheritances, conversions, and special basis rules.
  • Original Basis and Adjusted Basis Calculations
    How acquisition costs, capital improvements, depreciation, and other events establish and change tax basis.
  • Gift and Inheritance Basis Rules
    Carryover, double-basis, and date-of-death basis rules for property transferred by gift or inheritance.
  • Personal-to-Business Conversion Basis
    The lower-of-cost-or-FMV rule for depreciation when personal property is converted to business use.
  • Wash Sales and Related-Party Basis Adjustments
    Loss deferral and basis-adjustment rules for wash sales and related-party property transactions.
• Cost Recovery, Depreciation, and Amortization
  REG cost-recovery coverage for MACRS, Section 179, bonus depreciation, amortization, and compliance issues.
  • MACRS Recovery Periods and Depreciation Conventions
    How MACRS class lives, recovery periods, and timing conventions determine depreciation deductions.
  • Section 179 and Bonus Depreciation Rules
    Eligibility, ordering, annual limits, phaseouts, and listed-property constraints for accelerated cost recovery.
  • Tax Amortization of Intangible Costs
    Amortization rules for Section 197 intangibles, start-up expenditures, and organizational costs.
  • Cost Recovery Planning and Compliance
    How to coordinate cost-recovery elections, substantiation, recapture awareness, and compliance controls.