Economic stimulus bill enacted.* The Job Creation and Worker Assistance Act of 2002 made a number of changes to the tax law to offer short-term help to the unemployed and long-term stimulus to create jobs. Among its other provisions, the $40 billion measure * Allows additional 30% depreciation of certain capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) for three years, starting Sept. 11, 2001 (perhaps requiring amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. 2001 returns). * Extends various expiring tax provisions (for example, the work opportunity and electric-vehicle tax credits). * Permits a 13-week extension of unemployment benefits for employees whose regular benefits have terminated and who live in a state with a minimum 4% unemployment rate. * Enlarges the net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryback period from two years to five and waives alternative minimum tax depreciation. * Offers tax benefits for New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. reconstruction. Congress introduced these changes in the expectation they would promote economic growth. Another change. Among other issues, the act dealt with S corporation shareholders. Cancellation of debt (COD) income is excluded from an insolvent S INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility corporation's gross income. Hotly hot·ly adv. In an intense or fiery way: a hotly contested will. Adv. 1. hotly - in a heated manner; "`To say I am behind the strike is so much nonsense,' declared Mr Harvey heatedly"; "the debated was whether a shareholder in an insolvent S corporation could nevertheless increase his stock basis by the amount of the excluded COD income. Last year, the U.S. Supreme Court held, in Gitlitz, 531 US 206 (2001), that an S corporation shareholder could increase his stock basis in this manner. The act reversed the Court's decision, providing that S corporation COD income does not increase shareholder basis. This rule applies to debt cancellations occurring after October 11, 2001. |
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