Tax News

CCH (cch.taxgroup.com) reports:

  On March 17, 2009, Governor Charlie Crist signed legislation that changes the way in which Florida decouples from federal bonus depreciation and the IRC §179 expense election for corporate income tax purposes. As previously reported TAXDAY, 2009/3/09, S.11), 100% of any amount deducted for federal income tax purposes as bonus depreciation for the taxable year under IRC §168(k), as amended by the Economic Stimulus Act of 2008 (P.L. 110-185), for property placed in service in 2008, must be added back to federal taxable income. A subtraction from federal taxable income is allowed for the taxable year and the six subsequent years equal to one-seventh of the amount by which taxable income was increased by the addback. Similarly, an amount equal to 100% of any amount in excess of $128,000 deducted for federal income tax purposes for the taxable year under IRC §179, as amended by the Economic Stimulus Act, for the 2008 taxable year, must be added back to federal taxable income. A subtraction from federal taxable income is allowed for the taxable year and the six subsequent years equal to one-seventh of the amount by which taxable income was increased by the addback.

  The Department of Revenue will compromise penalties and interest imposed on taxpayers who filed returns before the new law was enacted and subsequently file amended returns to reflect changes in tax liability directly resulting from this new law.

  Subscribers can view S.B. 1112.
 
S.B. 1112, Laws 2009, effective March 17, 2009, operative retroactively to January 1, 2008