When a taxpayer replaces a roof, HVAC system, plumbing component, or other portion of depreciable property, the remaining basis of the retired component may continue sitting on the depreciation schedule unless the partial-disposition rules are properly applied. This two-hour self-study IRS continuing-education course examines Treasury Regulation §1.168(i)-8, including elective and mandatory partial dispositions, component identification, basis allocation, timing requirements, Form 4797 reporting, late-election procedures, documentation, and audit exposure.

Taught by Patrick Luna, a former IRS LB&I Engineer and national subject-matter expert in depreciation, capitalization, cost segregation, and partial dispositions who helped develop IRS examination guidance and train agents nationwide. This course provides a practical and technical examination of partial dispositions of MACRS property under Treasury Regulation §1.168(i)-8. Designed for tax practitioners who advise on repairs, improvements, remodels, and asset retirements, the course explains when a partial disposition may or must be recognized, and how the election impacts depreciation, gain or loss recognition, and audit exposure.

Participants will review the statutory and regulatory framework governing partial dispositions, including eligibility requirements, assets subject to the rules, and situations in which partial disposition treatment applies automatically. The course covers the partial disposition election, timing requirements, revocation limitations, and the distinction between current-year elections and late partial disposition elections under applicable revenue procedures.

This course emphasizes compliance, documentation, and examination considerations, making it well suited for practitioners involved in tax return preparation, review, planning, or audit defense involving depreciable real property and improvements.