Section 1 adopts the definition of “federal taxable income” to reflect the changes as of January 3, 2013, to the Internal Revenue Code, for tax year 2012 only, except for the federal provision allowing increased section 179 expensing. Section 179 expensing allows businesses to deduct the entire amount of the cost of eligible property in the tax year the property is placed in service instead of claiming depreciation deductions over a number of years. Minnesota requires that taxpayers add back 80 percent of the expense amount in the first tax year, then subtract one-fifth of that amount for each of the next five years.
Section 2 adopts the federal changes for determining federal adjusted gross income (FAGI), which is used for determining the alternative minimum tax (AMT) and wage withholding. Minnesota adopts these changes for tax year 2012 only.
Section 3 adopts the federal changes that affect the calculation of household income for purposes of the property tax refund chapter in Minnesota Statutes. This section is effective for tax year 2012 only for property tax refunds based on property taxes payable after December 31, 2012, and rent paid after December 31, 2011.
Section 4 allows for an extension until April 15, 2013, for filing amended returns for individuals who made IRA rollovers pursuant to the Federal Aviation and Modernization Act of 2012.
NBP:dv
|