2011 Regulation 3 Update - 2011 Regulation 3 Update...

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2011 Regulation 3 Update Regulation 3 Online Update for the 2011 Edition Last Updated March 3, 2011 Items Updated Since Last Posting: A.9. Section A: TEXT & AUDIO ERRATA A.1. Page R3-28, Item C.1: Expense Deduction in Lieu of Depreciation The tax law was updated subsequent to the publication of this textbook. The rules that are included in the textbook are the rules that were in effect for 2010 and 2011 and forward prior to the passing of the new law. Item C.1. should be change to read: 1. 2010-2011 Rules The limit is $500,000 of new or used property that is acquired from an unrelated party during the year. a. The maximum amount is reduced dollar for dollar by the amount of the property placed in service during the taxable year that exceeds $2,000,000 . **Note that the expensing election does not include qualified real property for 2010 and 2011. **Note that the expensing election includes off-the-shelf computer software through the year 2011. A.2. Page R3-28, Item C.2: Expense Deduction in Lieu of Depreciation The title for this item should be changed to read as follows: 2. 2012 and Forward Rules in Effect as of the Date of this Publication A.3. Page R3-30, Item V.B.1: Others The tax law for start-up costs has changed for the year 2010 only , but the law for organizational expenses has remained the same. o For organizational expenses, the law is as is stated in the textbook: The first $5,000 is expensed, and the balance is amortized over 180 months (the $5,000 is reduced as the total cost exceeds $50,000). o For start-up expenses , the new law states that the first $10,000 is expensed , and the balance is amortized over 180 months (the $10,000 is reduced as the total cost exceeds $60,000 ). Note: Passmaster Questions #CPA-01749 and CPA-01710 relate to organizational costs; thus,
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This note was uploaded on 09/25/2011 for the course ACCOUNTING AC591 taught by Professor W during the Spring '11 term at Keller Graduate School of Management.

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2011 Regulation 3 Update - 2011 Regulation 3 Update...

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