• Small Business and Work Opportunity Tax Act of 2007
   
• Gulf Opportunity Zone Act
   
• Configuring Windows XP Firewall
   
• 2005 Depreciation Caps for Luxury Autos and Section 179 Expense Deductions
   
• Internal Revenue Bulletin:  2004-14 - "Depreciation of MACRS Property That is Acquired in a Like-kind Exchange or As a Result of an Involuntary Conversion"
   
• Job Creation and Workers Assistance Act of 2002
   
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Gulf Opportunity Zone Act

The Gulf Opportunity Zone Act was signed by the President on December 21, 2005 to provide tax relief for businesses affected by hurricane Katrina. Businesses and individuals in the GO Zone are eligible for special tax incentives to offset redevelopment costs in the affected areas. There are two provisions that affect Asset Keeper.

• Bonus Depreciation - The depreciation under Code Sec. 167 is increased by 50 percent of the cost of qualified Katrina GO Zone property. This includes...
  • Property described in Code Sec. 168(k)(2)(A)(i), such as purchased software, leasehold improvements, covered property with a recovery period of 20 years or less, and certain equipment, or
  • Certain nonresidential real property or residential real property, substantially all of which is used in the Katrina GO Zone and is in the active conduct of a trade or business by a taxpayer in the Katrina GO Zone.

  Original use of the property in the GO Zone must start with the taxpayer on or after August 28, 2005. The property can be new OR used.
  
  Residential rental and nonresidential property must be placed in service on or before December 31, 2008.
  
  All other property must be placed in service on or before December 31, 2007.
  
  

• Code Section 179 Expensing - The regular Code Section 179 expensing deduction is $ 100,000 beginning in tax years that begin in 2003 and through tax years that begin in 2007. The GO Zone Act increases the Code Section 179 amount to $ 200,000 through tax years beginning in 2007. Property purchased on or after August 28, 2005 qualifies. It also increases the $ 400,000 investment limitation by the lesser of $ 600,000 or the cost of qualified Code Section 179 GO Zone property placed in service during the tax year. The increases in the Code Section 179 expensing amounts and investment limitations are NOT indexed for inflation like the amounts prescribed under the law are.

The provisions of the Gulf Opportunity Zone Act will be implemented in Asset Keeper, Version 21, as soon as more details regarding qualifying property has been released. This should be completed by January 15th, 2006

 

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Internal Revenue Bulletin:  2004-14 - "Depreciation of MACRS Property That is Acquired in a Like-kind Exchange or As a Result of an Involuntary Conversion"

NOTE: Use this table for reference only! Contact your state tax office for an official decision on compliance.

As of this date, some states are undecided on the treatment for the additional 30% depreciation. Based on their current law these states will comply with the Federal Tax Law changes as the appear, unless otherwise noted.

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If you receive an "invalid path or filename" error when attempting to open the program, check your path statement located in the autoexec.bat file.  Chances are there is an invalid path statement.  To trouble shoot the problem, REM (comment) the path statement and reboot your PC.  If you can open the program successfully, you know the problem is in the path statement.



If you wish to ask specific questions or request additional information, e-mail us at info@proware-cpa.com.