The IRS has posted revised tax forms on its Web site to accommodate retroactive changes to the tax law as a result of the Job Creation and Worker Assistance Act.
Changes that affect 2001 income tax returns include a new 30% bonus depreciation on new depreciable property acquired after September 10, 2001, and an increase to the limitation on first-year depreciation for new automobiles placed in service after September 10, 2001. The additional depreciation deductions are optional.
The new law also provides for a five-year carryback period for net operating losses arising in 2001 or 2002. Revisions to forms that include references to net operating losses are not yet available.
For more information about the tax law changes that may affect you or your clients this spring, see the IRS article, New Tax Law May Cut Your 2001 Tax.