This module covers how to classify fixed assets under MACRS by determining the correct recovery period, depreciation method, and convention. You'll work through common asset categories—including computers, vehicles, furniture, machinery, qualified improvement property, and buildings—and learn to avoid frequent classification mistakes. Accurate classification is the starting point for every tax depreciation calculation, and errors here cascade through the entire return.

This module walks through the first-year depreciation stack: Section 179 first, bonus depreciation second, and MACRS on the remaining basis. You'll apply the required order to a realistic fixed asset listing, check Section 179 limits, use the current-year bonus rate, and calculate total first-year deductions in an Excel workpaper. Getting the order and limits right directly affects the tax deduction your client or company can claim.

This module focuses on comparing book and tax depreciation, calculating the difference, and placing the adjustment on the correct side of Schedule M-1. You'll build a reconciliation workpaper, determine whether each difference is temporary or permanent, and connect the results to deferred tax logic. This is where your depreciation work becomes visible on the return—and where mapping errors can cause filing mistakes.

This module ties together classification, calculation, and reconciliation into a repeatable analyst workflow. You'll practice moving from asset facts to a defensible tax conclusion, apply a structured review checklist, and reflect on how to catch common errors before filing. Strong review habits distinguish reliable analysts from those who simply follow steps without understanding why.