Chapter 2011-229, L.O.F., amends Section 220.13(1)(e), F.S., to require adjustments for I.R.C. section 179 expense and bonus depreciation. These provisions were added to the Internal Revenue Code by the Small Business Jobs Act of 2010, and the Tax ...

 

DEPARTMENT OF REVENUE
Corporate, Estate and Intangible Tax

RULE NO.: RULE TITLE:
12C-1.013: Adjusted Federal Income Defined

PURPOSE AND EFFECT: Chapter 2011-229, L.O.F., amends Section 220.13(1)(e), F.S., to require adjustments for I.R.C. section 179 expense and bonus depreciation. These provisions were added to the Internal Revenue Code by the Small Business Jobs Act of 2010, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

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.

When in effect, the proposed amendments provide: (1) the additions that taxpayers are required to add back for the amount of the federal deduction claimed under I.R.C. section 179 that exceeds $250,000 (for tax years beginning in 2010) and $128,000 (for tax years beginning in 2011 and 2012) and under I.R.C. sections 167 and 168(k) for bonus depreciation (assets placed in service between January 1, 2010, and December 31, 2012); (2) 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) that taxpayers are required to maintain a schedule reflecting all adjustments made under Section 220.13(1)(e), F.S.; (4) that these adjustments do not affect the basis of the property; and (5) when the subtractions under Section 220.13(1)(e), F.S., and when the deductions allowed under I.R.C. section 179 are not required to be included in a taxpayer’s Florida corporate income tax return.

SUBJECT AREA TO BE ADDRESSED: The subject area of the workshop is the proposed procedures for taxpayers subject to the adjustments contained in Section 220.13(1)(e), F.S., for I.R.C. section 179 expense in excess of: $250,000 (for tax years beginning in 2010) and $128,000 (for tax years beginning in 2011 and 2012) and bonus depreciation under I.R.C. sections 167 and 168(k) (assets placed in service between January 1, 2010, and December 31, 2012).

RULEMAKING AUTHORITY: 213.06(1), 220.51 FS., s., 3, Ch. 2009-18, s. 4, Ch. 2009-192, s. 3, Ch. 2011-229 L.O.F.
LAW IMPLEMENTED: 220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3) FS.

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: August 8, 2012, 9:00 a.m.

PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, 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: Tammy Miller 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