Important Changes

Increase in the section 179 deduction. The maximum section 179 deduction you can elect for property you placed in service during 2001 has increased to $24,000. This amount will continue to increase through 2003. See Dollar Limit under How Much Can You Deduct? in chapter 2.

Election not to apply the mid-quarter convention under MACRS. If you file your 2001 return on a calendar year basis, on a fiscal year basis, or for a short tax year and the third or fourth quarter of your tax year includes September 11, 2001, you can elect to apply the half-year convention to all property placed in service during the year that would otherwise be subject to the mid-quarter convention under MACRS. See Which Convention Applies? and Using the Applicable Convention in a Short Tax Year in chapter 3.

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