Bonus Depreciation on New Property Purchases – Take It or Leave It?
Businesses are allowed to take an additional 30 percent in depreciation for new property purchased after September 10, 2001 and before May 4, 2003 and 50 percent for new property purchased between May 5 until September 11, 2004. However, the poor economy has reduced many business owners’ income in 2003 — which means they may be better off claiming these bonus deductions in future years when their income is expected to be higher. For 2003, many are deciding whether to “opt out” of this bonus depreciation, thus negating some of the tax advantages they believed they were getting when they made their purchases. Revised 1099 Forms – Return to Sender The tax act of 2003 significantly changed the tax rates applied to certain types of dividend income reported to taxpayers from brokerage firms that generate 1099-DIV forms. These changes, involving certain exceptions and other complicating factors, are causing so much confusion among the firms preparing the 1099 forms that many brokerage houses
