2001 Tax Forms Change as Deadline Approaches

In the wake of the new Job Creation and Worker Assistance Act of 2002, the IRS has announced plans to change two 2001 tax forms and related instructions to allow for retroactive changes to the tax law.

Form 4562, Depreciation and Amortization, will change to reflect the new 30% bonus depreciation. Taxpayers are entitled to additional depreciation of 30% of the adjusted basis of certain property acquired on or after September 11, 2001. Qualifying property includes property with a recovery period of fewer than 21 years, water utility property, qualified leasehold improvements, and publicly available computer software.

Form 2106, Employee Business Expenses, will change to reflect the increase in first-year depreciation allowed on vehicles subject to a depreciation cap. Taxpayers acquiring such vehicles on or after September 11, 2001 are entitled to as much as $4,600 in addition depreciation due to the 30% bonus now available.

In addition, the instructions to Form 1045, Application for Tentative Refund, will be changed to reflect the new five-year net operating loss carryback provision for losses arising in 2001 and 2002.

Additional information and downloadable forms are expected to be available on the IRS Web site within the week.

You may like these other stories...

Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...
Anti Burger Kings: Seven US companies shrinking tax the old-fashioned wayBurger King’s decision to combine with Canadian donut shop Tim Hortons is renewing controversy over the lengths some US companies will go to...
A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.The study, conducted by UNITE HERE International Union, a labor union that...

Already a member? log in here.

Upcoming CPE Webinars

Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.