Decoupling modification: Difference between revisions

Revision as of 17:28, 30 January 2012

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{{Multiple issues|confusing=January 2010|notability=January 2010|unreferenced=January 2010|orphan =September 2010}}

'''Decoupling modification''' is a [[tax]] terminology resulting from the [[federal tax law]] enacted March 9, 2002, which created a new tax deduction for "bonus depreciation" that threatens to cost states very large amounts of revenue.{{fact|date=January 2012}} Prior to such law, nearly all states used the federal definition of taxable business income including the federal allowance for depreciation as the basis for their own tax calculations.{{fact|date=January 2012}}

By "decoupling" states essentially disallow the new bonus depreciation provision.{{fact|date=January 2012}} As of 2010, thirty states plus the [[District of Columbia]] that previously followed federal [[depreciation]] rules are now "decoupled".{{fact|date=January 2012}} See for example, the form 500DM from State of [[Maryland]].

http://forms.marylandtaxes.com/current_forms/500dm.pdf