|
Posted by jessica.borger@gmail.com on August 5, 2008, 5:59 pm
Please log in for more thread options
The new Economic Stimulus Act of 2008 provides that businesses can
take additional first - year depreciation deduction equal to 50% of
the adjusted basis of the qualified property, similar to the "bonus"
depreciation allowed a few years back.
A taxpayer is allowed to elect out of the additional first-year
depreciation, but how is this election made? Simply by not claiming
it? Or does an attachement need to be filed with the return? Any
documentation available to prove this?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Harlan Lunsford on August 5, 2008, 6:28 pm
Please log in for more thread options
jessica.borger@gmail.com wrote:
> The new Economic Stimulus Act of 2008 provides that businesses can
> take additional first - year depreciation deduction equal to 50% of
> the adjusted basis of the qualified property, similar to the "bonus"
> depreciation allowed a few years back.
>
> A taxpayer is allowed to elect out of the additional first-year
> depreciation, but how is this election made? Simply by not claiming
> it? Or does an attachement need to be filed with the return? Any
> documentation available to prove this?
>
It's way too early to get into the mechanics of this. Let's wait for
the form 4562 instructions due out by December. Probably.
perhaps.
maybe.
if we're lucky.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by jessica.borger@gmail.com on August 5, 2008, 8:21 pm
Please log in for more thread options > jessica.bor...@gmail.com wrote:
> > The new Economic Stimulus Act of 2008 provides that businesses can
> > take additional first - year depreciation deduction equal to 50% of
> > the adjusted basis of the qualified property, similar to the "bonus"
> > depreciation allowed a few years back.
>
> > A taxpayer is allowed to elect out of the additional first-year
> > depreciation, but how is this election made? Simply by not claiming
> > it? Or does an attachement need to be filed with the return? Any
> > documentation available to prove this?
>
> It's way too early to get into the mechanics of this. Let's wait for
> the form 4562 instructions due out by December. Probably.
> perhaps.
> maybe.
> if we're lucky.
>
> ChEAr$,
> Harlan Lunsford, EA n LA
Thank you, unfortunately I have some 2008 short year returns due soon
(due dates stipulated by other factors, not IRS due dates) so if there
is any information sooner than December, it would be appreciated!
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by D. Stussy on August 6, 2008, 1:19 am
Please log in for more thread options
> jessica.borger@gmail.com wrote:
> > The new Economic Stimulus Act of 2008 provides that businesses can
> > take additional first - year depreciation deduction equal to 50% of
> > the adjusted basis of the qualified property, similar to the "bonus"
> > depreciation allowed a few years back.
> >
> > A taxpayer is allowed to elect out of the additional first-year
> > depreciation, but how is this election made? Simply by not claiming
> > it? Or does an attachement need to be filed with the return? Any
> > documentation available to prove this?
> >
> It's way too early to get into the mechanics of this. Let's wait for
> the form 4562 instructions due out by December. Probably.
> perhaps.
> maybe.
> if we're lucky.
The draft of the 2008 form is already available - but instructions are not.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Alan on August 5, 2008, 7:53 pm
Please log in for more thread options jessica.borger@gmail.com wrote:
> The new Economic Stimulus Act of 2008 provides that businesses can
> take additional first - year depreciation deduction equal to 50% of
> the adjusted basis of the qualified property, similar to the "bonus"
> depreciation allowed a few years back.
>
> A taxpayer is allowed to elect out of the additional first-year
> depreciation, but how is this election made? Simply by not claiming
> it? Or does an attachement need to be filed with the return? Any
> documentation available to prove this?
>
The IRS said it would issue guidance. They also said you can rely
on the regulations 1.168(k)-1. This was the reg for the last
bonus depreciation. See
http://www.irs.gov/newsroom/article/0,,id=181364,00.html
Below is an excerpt from the Reg. Below that is the Form 4562
instructions for 2002. The instructions about attaching a
statement were included in all 4562 instructions where bonus
depreciation was allowed.
I expect that the guidance will utilize the same method.
(3)Time and manner for making election—(i) Time for making
election. Except as provided in paragraph (e)(4) of this section,
any election specified in paragraph (e)(1) of this section must
be made by the due date (including extensions) of the Federal tax
return for the taxable year in which the qualified property or
the 50-percent bonus depreciation property, as applicable, is
placed in service by the taxpayer.
(ii) Manner of making election. Except as provided in paragraph
(e)(4) of this section, any election specified in paragraph
(e)(1) of this section must be made in the manner prescribed on
Form 4562, “Depreciation and Amortization,” and its instructions.
The election is made separately by each person owning qualified
property or 50-percent bonus depreciation property (for example,
for each member of a consolidated group by the common parent of
the group, by the partnership, or by the S corporation). If Form
4562 is revised or renumbered, any reference in this section to
that form shall be treated as a reference to the revised or
renumbered form.
(4) Special rules for 2000 or 2001 returns. For the election
specified in paragraph (e)(1)(i) of this section for qualified
property placed in service by the taxpayer during the taxable
year that included September 11, 2001, the taxpayer should refer
to the guidance provided by the Internal Revenue Service for the
time and manner of making this election on the 2000 or 2001
Federal tax return for the taxable year that included September
11, 2001 (for further guidance, see sections 3.03(3) and 4 of
Rev. Proc. 2002–33 (2002–1 C.B. 963), Rev. Proc. 2003–50 (2003–29
I.R.B. 119), and §601.601(d)(2)(ii)(b) of this chapter).
(5) Failure to make election. If a taxpayer does not make the
applicable election specified in paragraph (e)(1) of this section
within the time and in the manner prescribed in paragraph (e)(3)
or (4) of this section, the amount of depreciation allowable for
that property under section 167(f)(1) or under section 168, as
applicable, must be determined for the placed-in-service year and
for all subsequent taxable years by taking into account the
additional first year depreciation deduction. Thus, any election
specified in paragraph (e)(1) of this section shall not be made
by the taxpayer in any other manner (for example, the election
cannot be made through a request under section 446(e) to change
the taxpayer's method of accounting).
4562 Instructions
To make an election, attach a statement to your timely filed
return indicating the class of property for which you are making
the election and that, for such class: (a) you are electing not
to claim the 30% special allowance for qualified property
acquired before May 6, 2003; (b) you are electing to claim the
30% special allowance instead of the 50% special allowance for
qualified property acquired after May 5, 2003; or (c) you are
electing not to claim any special allowance for qualified
property acquired after May 5, 2003. The election must be made
separately by each person owning qualified property (for example,
by the partnership, by the S corporation, or by the common parent
of a consolidated group).
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Will "Allowance against Alternative Minimum Tax" in the Emergency Economic Stabilization Act of 2008 apply to 2008 credit carry forwards | October 7, 2008, 12:30 pm |
| Special Depreciation Allowance - Can I use this if my return is late? | April 16, 2007, 7:15 pm |
| Question on Economic Stimulus Act of 2008 - HR 5140 | February 9, 2008, 6:33 am |
| economic stimulus payment question | November 11, 2008, 11:31 pm |
| Depreciation Allowance | March 10, 2007, 2:30 am |
| Children received Economic Stimulus Packet | March 27, 2008, 8:47 am |
| Economic Stimulus Eligibility for individuals claimed as dependent | June 4, 2008, 3:45 pm |
| Emergency Economic Stabilization Act of 2008 | October 3, 2008, 3:38 pm |
| When will the Emergency Economic Stabilization Act of 2008 be effective most likely | October 2, 2008, 6:23 pm |
| Stimulus Act 2008 - Rebate | February 10, 2008, 2:42 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap