Chapter 2009-192, Laws of Florida, amends Section 220.13(1)(e), F.S., to require adjustments for the special 50 percent bonus depreciation, section 179, I.R.C., expense in excess of $128,000, and deferral of cancellation of indebtedness income. ...

 

DEPARTMENT OF REVENUE
Corporate, Estate and Intangible Tax

RULE NO: RULE TITLE
12C-1.013: Adjusted Federal Income Defined
PURPOSE AND EFFECT: Chapter 2009-192, Laws of Florida, amends Section 220.13(1)(e), F.S., to require adjustments for the special 50 percent bonus depreciation, section 179, I.R.C., expense in excess of $128,000, and deferral of cancellation of indebtedness income. These provisions were added to the Internal Revenue Code by the American Recovery and Reinvestment Act of 2009, Public Law 111-5. The proposed amendments to Rule 12C-1.013, F.A.C. (Adjusted Federal Income Defined), are necessary to update the provisions for adjustments to federal income for Florida income tax purposes and to establish procedures for reporting the additions and claiming the subtractions required by Section 220.13(1)(e), F.S., and provide procedures for filing amended Florida corporate income tax returns for the 2007 and 2008 tax years. When in effect, the proposed amendments: (1) provide the additions that taxpayers are required to make for the amount of the federal deduction claimed under I.R.C. section 179 that exceeds $128,000, the amount of special 50 percent bonus depreciation, and the amount of deferral of cancellation of indebtedness; (2) provide the subtractions that are available in each of seven tax years beginning with the year an addition is made under Section 220.13(1)(e), F.S.; (3) require taxpayers to maintain a schedule reflecting all adjustments made under Section 220.13(1)(e), F.S.; (4) provide that these adjustments do not affect the basis of the property; (5) require taxpayers who filed their Florida corporate income tax returns in a manner other than provided in Chapter 2009-192, L.O.F., to amend their Florida tax return; (6) provide that penalty and interest that are a direct result of the changes in Chapter 2009-192, L.O.F., will be compromised or waived when an amended Florida corporate income tax return is filed; (7) provide when the subtractions under Section 220.13(1)(e), F.S., are not to be included in a taxpayer’s Florida corporate income tax return; and (8) provide when the deductions allowed under section 179, I.R.C., and for special 50 percent bonus depreciation are not required to be included in a taxpayer’s Florida corporate income tax return.
SUBJECT AREA TO BE ADDRESSED: The subject of this workshop is the requirement to make adjustments for the special 50 percent bonus depreciation provisions for Florida corporate income tax purposes, for section 179, I.R.C., expense in excess of $128,000, and for deferral of cancellation of indebtedness income, as provided in Section 220.13(1)(e), F.S., as amended by Chapter 2009-192, Laws of Florida.
SPECIFIC AUTHORITY: 213.06(1), 220.51 FS., s. 3, Ch. 2009-192, L.O.F.
LAW IMPLEMENTED: 220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3) FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: January 27, 2010, 9:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Robert DuCasse, Revenue Program Administrator I, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS PUBLISHED ON THE DEPARTMENT’S INTERNET SITE AT: myflorida.com/dor/rules.