11753216, 12C-1.013 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 11753216

Notice of Development of Rulemaking

Department:

DEPARTMENT OF REVENUE

Division:

Corporate, Estate and Intangible Tax

Chapter:

CORPORATE INCOME TAX

Overview

RULE:

12C-1.013

Adjusted Federal Income Defined

PURPOSE:

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:

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:

220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3) FS.

PRINT PUBLISH DATE:

7/20/2012 Vol. 38/29

RELATED STATUTES
AND LAWS:

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

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=12C-1.013&PDate=7/20/2012&Section=1

REFERENCE MATERIALS:

No reference(s).

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