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Alabama 2010: Special Depreciation Allowance for Business Assets prior to 9/9/2010

Updated: 7/20/2011
Article ID: SLN53170

For tax year 2010, businesses could claim a “special depreciation allowance” deduction on assets acquired in 2010. If the assets were placed in service prior to September 9, 2010, the deduction was 50% of the cost; if after September 8, 2010, the deduction was 100% of the cost.

Certain customers, who placed assets in service prior to September 9, 2010, may have received the 100% deduction instead of the correct 50% deduction and have an incorrect Alabama state tax return. The federal tax return is correct.

This issue has been fixed.

How to tell if you are impacted:

 You may be affected if ALL of the following are true:

  1. You filed a 2010 Alabama tax return prior March 17, 2011 AND
  2. On your federal return, you entered business assets (large purchases) placed in service after December 31, 2009 and before September 9, 2010 AND
  3. You chose to take the “special depreciation allowance” for those assets on your federal tax return AND
  4. There is an amount for this allowance on your federal Form 4562, Part II, Line 14.

      Note: The special allowance is also known as bonus depreciation.

If you are affected, you may have underpaid your Alabama tax. You will need to amend your Alabama tax return.

If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Alabama– Special Depreciation Allowance prior to 9/9/2010.

Solution

Let us do the work for you. We highly recommend this. 

  1. Please download and print this Authorization Form.
  2. Complete the form and fax it to us at the number printed at the top of the form.
  3. A TurboTax representative will contact you when your amended return is complete, or if we have additional questions.
    • Note: After we receive your completed authorization form, please allow up to 15 days to amend your return.
  4. You can print, sign and mail the corrected return to the Alabama Department of Revenue.

Or you can make the corrections yourself. However, the amend process can be complex.

  • To do it yourself, please follow these step-by-step instructions.
  • After you make the changes to your tax return, you will need to mail a copy to the Alabama Department of Revenue.
  • If you need assistance, call us at the phone number in the TurboTax email.

 

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