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88-582: Tax deductions for depreciation have been allowed in the U.S. since the inception of the income tax. Prior to 1971, these deductions could be computed in a variety of manners over a wide range of lives, under old Bulletin F. In 1971, Congress introduced the Class Life Asset Depreciation Range (ADR) system in an attempt to simplify calculations and provide some uniformity. Under ADR, the IRS prescribed lives for classes of assets based on

176-663: A Social Security number for every claimed child, to verify the child's existence. Before this act, parents claiming tax deductions were on the honor system not to lie about the number of children they supported. The requirement was phased in, and initially Social Security numbers were required only for children over the age of 5. During the first year, this anti-fraud change resulted in seven million fewer dependents being claimed, nearly all of which are believed to have involved either children that never existed, or tax deductions improperly claimed by non-custodial parents. The original alternative minimum tax targeted tax shelters used by

264-634: A building housing IRS offices in February 2010, blamed his problems on many factors, including the Section 1706 change in the tax law while even mentioning Senator Moynihan by name, though no intermediary firm is mentioned, and failure to file a return was admitted. Section 2(a) of the Act also officially changed the name of the Internal Revenue Code from the Internal Revenue Code of 1954 to

352-526: A certain level were taxed at an effective rate of about 28%. This was jettisoned in the Omnibus Budget Reconciliation Act of 1990 , otherwise known as the "Bush tax increase", which violated his Taxpayer Protection Pledge . The Act also increased incentives favoring investment in owner-occupied housing relative to rental housing. Prior to the Act, all personal interest was deductible. Subsequently, only home mortgage interest

440-546: A class acquired in a particular tax year. All vintage accounts for the same year were assumed placed in service in the middle of the year; however, a taxpayer could elect the modified half year convention with potentially favorable results. In 1981, Congress again changed the depreciation system, providing generally for shorter lives for recovery of costs. Under the Accelerated Cost Recovery System (ACRS), broad groups of assets were assigned based on

528-470: A decline in air quality. Other factors negatively affecting Iowa's environment include the extensive use of older coal-fired power plants , fertilizer and pesticide runoff from crop production, and diminishment of the Jordan Aquifer . The 2020–2023 North American drought has affected Iowa particularly: As of January 2024, Iowa was in its 187th consecutive week of at least moderate drought ,

616-625: A few classes, but are generally somewhat longer than regular lives for most classes. The following example is extracted from IRS Publication 946 : You bought office furniture (7-year property) for $ 10,000 and placed it in service on October 13, 2013. You use the furniture only for business. A taxpayer may group assets together into a general asset account. The grouped assets must have the same life, method of depreciation, convention, additional first year depreciation percentage, and year (or quarter or month) placed in service. Listed property or vehicles cannot be grouped with other assets. Depreciation for

704-631: A few wealthy households. However, the Tax Reform Act of 1986 greatly expanded the AMT to aim at a different set of deductions that most Americans receive. Things like the personal exemption, state and local taxes, the standard deduction, private activity bond interest, certain expenses like union dues and even some medical costs for the seriously ill could now trigger the AMT. In 2007, the New York Times reported, "A law for untaxed rich investors

792-506: A much higher salary than before, was eliminated (although later partially reinstated, for farmers in 1997 and for fishermen in 2004). The Act, however, increased the personal exemption and standard deduction. The individual retirement account (IRA) deduction was severely restricted. The IRA had been created as part of the Employee Retirement Income Security Act of 1974 , where employees not covered by

880-537: A pension plan could contribute the lesser of $ 1500 or 15% of earned income. The Economic Recovery Tax Act of 1981 (ERTA) removed the pension plan clause and raised the contribution limit to the lesser of $ 2000 or 100% of earned income. The 1986 Tax Reform Act retained the $ 2000 contribution limit, but restricted the deductibility for households that have pension plan coverage and have moderate to high incomes. Non-deductible contributions were allowed. Depreciation deductions were also curtailed. Prior to ERTA, depreciation

968-416: A reduction of income tax liability across all income levels. The higher standard deduction substantially simplified the preparation of tax returns for many individuals. For tax year 1987, the Act provided a graduated rate structure of 15%/28%/33%. Beginning with tax year 1988, the Act provided a nominal rate structure of 15%/28%/33%. However, beginning with 1988, taxpayers having taxable income higher than

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1056-501: A subsection (d) to Section 530 of the Revenue Act of 1978 , which removed "safe harbor" exception for independent contractor classification (which at the time avoided payroll taxes) for workers such as engineers, designers, drafters, computer professionals, and "similarly skilled" workers. If the IRS determines that a third-party intermediary firm's worker previously treated as self-employed should have been classified as an employee,

1144-456: A taxpayer must compute tax deductions for depreciation of tangible property using specified lives and methods. Assets are divided into classes by type of asset or by business in which the asset is used. (See tables of classes below.) Where a general class based on the nature of the asset applies (00.xx classes below), that class takes precedence over the use class. For each class, three lives are specified: one for regular depreciation (GDS in

1232-595: Is a state in the upper Midwestern region of the United States . It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Illinois to the east and southeast, Missouri to the south, Nebraska to the west, South Dakota to the northwest, and Minnesota to the north. Iowa is the 26th largest in total area and

1320-613: Is a line along 43 degrees, 30 minutes north latitude. The southern border is the Des Moines River and a not-quite-straight line along approximately 40 degrees 35 minutes north, as decided by the U.S. Supreme Court in Missouri v. Iowa (1849) after a standoff between Missouri and Iowa known as the Honey War . Iowa is the only state whose east and west borders are formed almost entirely by rivers. Carter Lake, Iowa ,

1408-630: Is categorized as the Central forest-grasslands transition ecoregion. The Northern, drier part of Iowa is categorized as part of the Central tall grasslands . There is a dearth of natural areas in Iowa; less than 1% of the tallgrass prairie that once covered most of Iowa remains intact; only about 5% of the state's prairie pothole wetlands remain, and most of the original forest has been lost. As of 2005 Iowa ranked 49th of U.S. states in public land holdings. Threatened or endangered animals in Iowa include

1496-443: Is considered placed in service in the middle of the month in which acquired ("mid-month convention"). Special rules apply for pro rating deductions for short tax years and for the first year of business, or where more than 40% of tangible personal property additions are in the final quarter of the year. The method and life used in depreciating an asset is an accounting method, change of which requires IRS approval. Taxpayers may track

1584-527: Is part of the Driftless Area , consisting of steep hills and valleys which appear as mountainous. Several natural lakes exist, most notably Spirit Lake , West Okoboji Lake , and East Okoboji Lake in northwest Iowa ( see Iowa Great Lakes ). To the east lies Clear Lake . Man-made lakes include Lake Odessa, Saylorville Lake , Lake Red Rock , Coralville Lake , Lake MacBride, and Rathbun Lake. Before European settlement, 4 to 6 million acres of

1672-468: Is ranked among the best states and it performs highly on metrics such as governance, education, infrastructure, and safety. Like many other states , Iowa takes its name from its predecessor, Iowa Territory , whose name in turn is derived from the Iowa River , and ultimately from the ethnonym of the indigenous Ioway people . The Ioway are a Chiwere -speaking Siouan Nation , who were once part of

1760-588: Is the only city in the state located west of the Missouri River. Iowa has 99 counties , but 100 county seats because Lee County has two. The state capital, Des Moines , is in Polk County . Iowa's bedrock geology generally decreases in age from east to west. In northwest Iowa, Cretaceous bedrock can be 74 million years old; in eastern Iowa Cambrian bedrock dates to c. 500 million years ago. The oldest radiometrically dated bedrock in

1848-570: The Internal Revenue Code of 1986 . Although the Act made numerous amendments to the 1954 Code, it was not a re-enactment or a substantial re-codification or reorganization of the overall structure of the 1954 Code. Thus, the tax laws since 1954 (including those after 1986) have taken the form of amendments to the 1954 Code, although it is now called the 1986 Code. Iowa This is an accepted version of this page Iowa ( / ˈ aɪ . ə w ə / EYE -ə-wə )

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1936-530: The 1900 census , though Iowa now has a predominantly urban population. The Iowa Economic Development Authority, created in 2011 has replaced the Iowa Department of Economic Development and its annual reports are a source of economic information. Iowa is bordered by the Mississippi River on the east along with the Missouri River and the Big Sioux River on the west. The northern boundary

2024-462: The 31st most populous of the 50 U.S. states , with a population of 3.19 million. The state's capital , most populous city , and largest metropolitan area fully located within the state is Des Moines . A portion of the larger Omaha, Nebraska, metropolitan area extends into three counties of southwest Iowa. Other metropolitan statistical areas in Iowa include Iowa City , Cedar Rapids , Waterloo-Cedar Falls , Ames , Dubuque , Sioux City , and

2112-594: The French and Indian War , transferred ownership to their ally, Spain. Spain practiced very loose control over the Iowa region, granting trading licenses to French and British traders, who established trading posts along the Mississippi and Des Moines Rivers . Iowa was part of a territory known as La Louisiane or Louisiana , and European traders were interested in lead and furs obtained by Indigenous people. The Sauk and Meskwaki effectively controlled trade on

2200-566: The Ho-Chunk Confederation that inhabited the area now corresponding to several Midwest states. The Ioway were one of the many Native American nations whose territory comprised the future state of Iowa before the time of European colonization. When Indigenous peoples of the Americas first arrived in what is now Iowa more than 13,000 years ago, they were hunters and gatherers living in a Pleistocene glacial landscape. By

2288-845: The Indiana Territory ) that surrendered much of Illinois to the U.S. enraged many Sauk and led to the 1832 Black Hawk War . The Sauk and Meskwaki were forced to sell some of their land in the Mississippi Valley to the U.S. in 1832 in the Black Hawk Purchase Treaty and sold their remaining land in Iowa in 1842, most of them moving to a reservation in Kansas. In 1837, some the Potawatomi from Illinois were resettled in Iowa, while many Meskwaki later returned to Iowa and settled near Tama, Iowa ;

2376-591: The Late Archaic period , Native Americans in Iowa began utilizing domesticated plants. The subsequent Woodland period saw an increased reliance on agriculture and social complexity, with increased use of mounds, ceramics, and specialized subsistence. During the Late Prehistoric period (beginning about AD 900) increased use of maize and social changes led to social flourishing and nucleated settlements. The arrival of European trade goods and diseases in

2464-804: The Meskwaki Settlement remains to this day. In 1856 the Iowa Legislature passed an unprecedented act allowing the Meskwaki to purchase the land. However, in contrast to the unprecedented act of the Iowa Legislature, the United States Federal Government, through the use of Treaties, forced the Ho-Chunk from Iowa in 1848, and forced the Dakota from Iowa by 1858. Western Iowa around modern Council Bluffs

2552-427: The Mississippi River , averages 52 °F (11 °C). Snowfall is common, with Des Moines getting about 26 days of snowfall a year, and other places, such as Shenandoah getting about 11 days of snowfall in a year. Spring ushers in the beginning of the severe weather season. As of 2008, Iowa averaged about 50 days of thunderstorm activity per year. As of 2015, the 30-year annual average of tornadoes in Iowa

2640-601: The U.S. Congress established the Territory of Iowa . President Martin Van Buren appointed Robert Lucas governor of the territory, which at the time had 22 counties and a population of 23,242. Almost immediately after achieving territorial status, a clamor arose for statehood. On December 28, 1846, Iowa became the 29th state in the Union when President James K. Polk signed Iowa's admission bill into law. Once admitted to

2728-650: The War of 1812 , and Fort Shelby in Prairie du Chien, Wisconsin , also fell to the British. Black Hawk took part in the siege of Fort Madison. Another small military outpost was established along the Mississippi River in present-day Bellevue . This poorly situated stockade was similarly attacked by hundreds of Indigenous people in 1813, but was successfully defended and later abandoned until settlers returned to

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2816-596: The interior least tern , piping plover , Indiana bat , pallid sturgeon , the Iowa Pleistocene land snail , Higgins' eye pearly mussel , and the Topeka shiner . Endangered or threatened plants include western prairie fringed orchid , eastern prairie fringed orchid , Mead's milkweed , prairie bush clover , and northern wild monkshood . The explosion in the number of high-density livestock facilities in Iowa has led to increased rural water contamination and

2904-400: The standard deduction , and the personal exemption , removing approximately six million lower-income Americans from the tax base. Offsetting these cuts, the act increased the alternative minimum tax and eliminated many tax deductions, including deductions for rental housing, individual retirement accounts , and depreciation . Although the tax reform was projected to be revenue-neutral, it

2992-454: The Act could have had the tendency to decrease the new supply of housing accessible to low-income people. The Low-Income Housing Tax Credit was added to the Act to provide some balance and encourage investment in multifamily housing for the poor. Moreover, interest on consumer loans such as credit card debt was no longer deductible. An existing provision in the tax code, called Income Averaging, which reduced taxes for those only recently making

3080-611: The Alternative Depreciation System (ADS), using specified lives and the straight line method. It may be applied at the election of the taxpayer in lieu of regular depreciation, and it must be used for the following types of property: In addition, the ADS must be used for computing depreciation deductions for the Alternative Minimum Tax . ADS lives are the same as regular depreciation lives for

3168-803: The Army of the Potomac in Virginia and fought under Union General Philip Sheridan in the Shenandoah Valley . Many died and were buried at Andersonville. They marched on General Nathaniel Banks ' ill-starred expedition to the Red River. Twenty-seven Iowans have been awarded the Medal of Honor , the highest military decoration awarded by the United States government, which was first awarded in

3256-508: The Civil War. Iowa had several brigadier generals and four major generals— Grenville Mellen Dodge , Samuel R. Curtis , Francis J. Herron , and Frederick Steele —and saw many of its generals go on to state and national prominence following the war. Following the Civil War, Iowa's population continued to grow dramatically, from 674,913 people in 1860 to 1,624,615 in 1880. The American Civil War briefly brought higher profits. In 1917,

3344-476: The Depression. The crisis spurred a major, decade-long population decline. After bottoming out in the 1980s, Iowa's economy began to reduce its dependence on agriculture. By the early 21st century, it was characterized by a mix of manufacturing, biotechnology, finance and insurance services, and government services. The population of Iowa has increased at a slower rate than the U.S. as a whole since at least

3432-463: The IRS assesses substantial back taxes, penalties and interest on that third-party intermediary company, though not directly against the worker or the end client. It does not apply to individuals directly contracted to clients. The change in the tax code was expected to offset tax revenue losses of other legislation Moynihan proposed that changed the law on foreign taxes of Americans working abroad. At least one firm simply adapted its business model to

3520-517: The Indochina War. An exception was required for this resettlement as State Dept policy at the time forbid resettlement of large groups of refugees in concentrated communities; an exception was ultimately granted and 1200 Tai Dam were resettled in Iowa. Since then Iowa has accepted thousands of refugees from Laos, Cambodia, Thailand, Bhutan, and Burma. The farm crisis of the 1980s caused a major recession in Iowa, causing poverty not seen since

3608-570: The Iowa portion of the Quad Cities . Iowa is home to 940 small towns, though its population is increasingly urbanized as small communities and rural areas decline in population. During the 18th and early 19th centuries, Iowa was a part of French Louisiana and Spanish Louisiana ; its state flag is patterned after the flag of France . After the Louisiana Purchase , pioneers laid the foundation for an agriculture-based economy in

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3696-590: The Louisiana Purchase into two parts—the Territory of Orleans and the District of Louisiana, with present-day Iowa falling in the latter. The Indiana Territory , created in 1800, exercised jurisdiction over this portion of the District; William Henry Harrison was its first governor. Much of Iowa was mapped by Zebulon Pike in 1805, but it was not until the construction of Fort Madison in 1808 that

3784-470: The Mississippi in the late 18th century and early 19th century. Among the early traders on the Mississippi were Julien Dubuque , Robert de la Salle , and Paul Marin . Along the Missouri River at least five French and English trading houses were built before 1808. In 1800, Napoleon Bonaparte took control of Louisiana from Spain in a treaty . After the 1803 Louisiana Purchase , Congress divided

3872-483: The Protohistoric period led to dramatic population shifts and economic and social upheaval, with the arrival of new tribes and early European explorers and traders. There were numerous native American tribes living in Iowa at the time of early European exploration. Tribes which were probably descendants of the prehistoric Oneota include the Dakota , Ho-Chunk , Ioway , and Otoe . Tribes which arrived in Iowa in

3960-404: The U.S. savings and loan crisis . Prior to 1986, passive investors were able to use real estate losses to offset taxable income. When losses from these deals were no longer able to be deducted, many investors sold their assets, which contributed to sinking real estate prices. To help small landlords, The Tax Reform Act of 1986 included a temporary $ 25,000 net rental loss deduction, provided that

4048-518: The U.S. established tenuous military control over the region. Fort Madison was built to control trade and establish U.S. dominance over the Upper Mississippi, but it was poorly designed and disliked by the Sauk and Meskwaki, many of whom allied with the British, who had not abandoned claims to the territory. Fort Madison was defeated by British-supported Indigenous people in 1813 during

4136-403: The Union, the state's boundary issues resolved, and most of its land purchased from Natives, Iowa set its direction to development and organized campaigns for settlers and investors, boasting the young frontier state's rich farmlands, fine citizens, free and open society, and good government. Iowa has a long tradition of state and county fairs. The first and second Iowa State Fairs were held in

4224-455: The United States entered World War I and farmers as well as all Iowans experienced a wartime economy. For farmers, the change was significant. Since the beginning of the war in 1914, Iowa farmers had experienced economic prosperity, which lasted until the end of the war. In the economic sector, Iowa also has undergone considerable change. Beginning with the first industries developed in the 1830s, which were mainly for processing materials grown in

4312-401: The account is computed as if the entire account were a single asset. Gain or loss may be deferred or recognized on retirement of assets under MACRS, at the taxpayer's election. Under default rules, proceeds from disposing of a depreciable asset in a multiple asset account are recognized as ordinary income, and depreciation on the account is unaffected by the retirement. An optional method allows

4400-553: The alternative minimum tax (AMT). These latter, longer lives approximate "economic depreciation," a concept economists have used to determine the actual life of an asset relative to its economic value. Defined contribution (DC) pension contributions were curtailed. The law prior to TRA86 was that DC pension limits were the lesser of 25% of compensation or $ 30,000. This could be accomplished by any combination of elective deferrals and profit sharing contributions. TRA86 introduced an elective deferral limit of $ 7000, indexed to inflation. Since

4488-523: The area in the mid-1830s. After the war, the U.S. re-established control of the region through the construction of Fort Armstrong , Fort Snelling in Minnesota , and Fort Atkinson in Nebraska . The United States encouraged settlement of the east side of the Mississippi and removal of Indians to the west. A disputed 1804 treaty between Quashquame and William Henry Harrison (then governor of

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4576-550: The area, Iowa has experienced a gradual increase in the number of business and manufacturing operations. The transition from an agricultural economy to a mixed economy happened slowly. The Great Depression and World War II accelerated the shift away from smallholder farming to larger farms, and began a trend of urbanization. The period after World War II witnessed a particular increase in manufacturing operations. In 1975, Governor Robert D. Ray petitioned President Ford to allow Iowa to accept and resettle Tai Dam refugees fleeing

4664-648: The armed forces, over one-sixth of whom were killed before the Confederates surrendered at Appomattox . Most fought in the great campaigns in the Mississippi Valley and in the South . Iowa troops fought at Wilson's Creek in Missouri , Pea Ridge in Arkansas , Forts Henry and Donelson, Shiloh, Chattanooga, Chickamauga, Missionary Ridge, and Rossville Gap as well as Vicksburg, Iuka, and Corinth. They served with

4752-423: The asset to be removed from the account at the start of the year from retirement, in which case gain or loss is on the asset is subject to regular rules. From IRS Publication 946 Excerpt from Table B-1 (many asset classes omitted here) From IRS Publication 946 Table A-1. Other tables are available for options different from those shown below. Tax Reform Act of 1986 The Tax Reform Act of 1986 (TRA)

4840-470: The availability of bonus depreciation in general, the Tax Relief Act provided for a new 100 percent depreciation deduction for qualified property that is acquired and placed into service by the taxpayer between September 8, 2010, and January 1, 2014. Special rules have also applied for bio fuel, recycling, and disaster assistance property. Decoupling modification is a tax terminology resulting from

4928-441: The basis and accumulated depreciation of assets individually or in vintage accounts, as in the old ADR system. Where assets are tracked in vintage accounts, a first-in-first-out convention is usually applied to determine basis of assets retired. At various times, additional depreciation deductions have been allowed to encourage investment. These allowances generally have had limitations. For example, an additional deduction of 50% of

5016-509: The cost of qualifying property is allowed for certain property acquired after December 31, 2007 and before January 1, 2011 A nearly identical allowance was available for property acquired after September 10, 2001 and before 2005. The IRS recently issued guidance clarifying when taxpayers are eligible for 100 percent bonus depreciation. In addition, the guidance provides procedures for electing 100 percent bonus depreciation and 50 percent bonus depreciation for certain property. In addition to extending

5104-422: The declining balance method and straight line method of computing depreciation are allowed under MACRS. Taxpayers using the declining balance change to the straight line method at the point at which depreciation deductions are optimized. (See the tables below). All tangible personal property acquired during the year is considered placed in service in the middle of the tax year (" half-year convention "). Real property

5192-437: The expense of more rural counties. Iowa, in common with other Midwestern states (especially Kansas , Nebraska , North Dakota , and South Dakota ), is feeling the brunt of rural flight , although Iowa has been gaining population since approximately 1990. Some smaller communities, such as Denison and Storm Lake , have mitigated this population loss through gains in immigrant laborers. Another demographic problem for Iowa

5280-588: The fairgrounds were being used as an army supply depot; and in 2020 due to the COVID-19 pandemic in the United States . Iowa supported the Union during the Civil War , voting heavily for Abraham Lincoln , though there was an antiwar " Copperhead " movement in the state, caused partially by a drop in crop prices caused by the war. There were no battles in the state, although the Battle of Athens , Missouri, 1861,

5368-686: The federal tax law enacted March 9, 2002, which created a new tax deduction for "bonus depreciation" that threatened to cost states very large amounts of revenue. Federal Bonus Depreciation, Section 168(k) of the Internal Revenue Code, allows the acceleration of depreciation on federal tax returns, for example, writing off a higher amount of depreciation for the first year an asset goes into service. States that refuse to accept this method of calculating depreciation for state taxes, for example, Iowa and Maryland , publish forms with instructions so stating. Certain assets must be depreciated under

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5456-718: The heart of the Corn Belt . In the latter half of the 20th century, Iowa's agricultural economy began to transition to a diversified economy of advanced manufacturing, processing, financial services , information technology , biotechnology , and green energy production. Politically, Iowa is notable for the Iowa Caucuses , an influential event in national politics, as well as its high levels of voter turnout and foundational leadership in civil rights including early adoption or support of black suffrage , women's rights , and same-sex marriage . Iowa's standard of living

5544-493: The late prehistoric or protohistoric periods include the Illiniwek , Meskwaki , Omaha , and Sauk . The first known European explorers to document Iowa were Jacques Marquette and Louis Jolliet who traveled the Mississippi River in 1673 documenting several Indigenous villages on the Iowa side. The area of Iowa was claimed for France and remained a French territory until 1763. The French, before their impending defeat in

5632-403: The longest stretch since the 1950s. 96% of areas are affected by drought. Iowa has a humid continental climate throughout the state ( Köppen climate classification Dfa ) with extremes of both heat and cold. The average annual temperature at Des Moines is 50 °F (10 °C); for some locations in the north, such as Mason City, the figure is about 45 °F (7 °C), while Keokuk , on

5720-653: The more developed eastern part of the state at Fairfield . The first fair was held October 25–27, 1854, at a cost of around $ 323. Thereafter, the fair moved to locations closer to the center of the state and in 1886 found a permanent home in Des Moines. The State Fair has been held annually since then, except for a few exceptions: 1898 due to the Spanish–American War and the World's Fair being held in nearby Omaha, Nebraska ; from 1942 to 1945, due to World War II , as

5808-429: The nature or use of the asset. Such classes included general classes (such as office equipment) and industry classes (such as assets used in the manufacture of rubber goods). Taxpayers could use their choice of several methods of depreciating assets, including straight line, declining balance, and sum of years digits. Asset costs and accumulated depreciation were tracked by "vintage accounts" consisting of all assets within

5896-501: The new regulations. A 1991 Treasury Department study found that tax compliance for technology professionals was among the highest of all self-employed workers and that Section 1706 would raise no additional tax revenue and could possibly result in losses as self-employed workers did not receive as many tax-free benefits as employees. In one report in 2010, Moynihan's initiative was labeled "a favor to IBM ." A suicide note by software professional Joseph Stack , who flew his airplane into

5984-402: The northwest of the state receiving less than 28 inches (71 cm). The pattern of precipitation across Iowa is seasonal with more rain falling in the summer months. Virtually statewide, the driest month is January or February, and the wettest month is June owing to frequent showers and thunderstorms some of which produce hail, damaging winds or tornadoes. In Des Moines, roughly in the center of

6072-483: The old ADR lives (which the IRS has updated since). Taxpayers were permitted to calculate depreciation only under the declining balance method switching to straight line or the straight line method. Other changes applied as well. The present MACRS system was adopted as part of the Tax Reform Act of 1986 . California is the only state which does not fully conform its depreciation schedule to MACRS. Under MACRS

6160-554: The profit sharing percentage must be uniform for all employees, this had the intended result of making more equitable contributions to 401(k)'s and other types of DC pension plans. The 1986 Tax Reform Act introduced the General Nondiscrimination rules which applied to qualified pension plans and 403(b) plans that for private sector employers. It did not allow such pension plans to discriminate in favor of highly compensated employees. A highly compensated employee for

6248-524: The property was not personally used for the greater of 14 days or 10% of rental days, and adjusted gross income was less than $ 100,000. The Internal Revenue Code does not contain any definition or rules dealing with the issue of when a worker should be characterized for tax purposes as an employee, rather than as an independent contractor. The tax treatment depends on the application of (20) factors provided by common law, which varies by state. Introduced by Senator Daniel Patrick Moynihan , Section 1706 added

6336-506: The purposes of testing a plan's compliance for the 2006 plan year is any employee whose compensation exceeded $ 95,000 in the 2005 plan year. Therefore, all new hires are by definition nonhighly compensated employees. A plan could not give benefits or contributions on a more favorable basis for the highly compensated employees if it cannot pass the minimum coverage test and the minimum participation test. The Act required people claiming children as dependents on their tax returns to obtain and list

6424-480: The state is the 2.9 billion year old Otter Creek Layered Mafic Complex. Precambrian rock is exposed only in the northwest of the state. Iowa can be divided into eight landforms based on glaciation , soils , topography , and river drainage. Loess hills lie along the western border of the state, some of which are several hundred feet thick. Northeast Iowa along the Upper Mississippi River

6512-532: The state was covered with wetlands, about 95% of these wetlands have been drained. Iowa's natural vegetation is tallgrass prairie and savanna in upland areas, with dense forest and wetlands in flood plains and protected river valleys, and pothole wetlands in northern prairie areas. Most of Iowa is used for agriculture; crops cover 60% of the state, grasslands (mostly pasture and hay with some prairie and wetland) cover 30%, and forests cover 7%; urban areas and water cover another 1% each. The southern part of Iowa

6600-634: The state, over two-thirds of the 34.72 inches (88.2 cm) of rain falls from April through September, and about half the average annual precipitation falls from May through August peaking in June. Iowa's population is more urban than rural, with 61 percent living in urban areas in 2000, a trend that began in the early 20th century. Urban counties in Iowa grew 8.5% from 2000 to 2008, while rural counties declined by 4.2%. The shift from rural to urban has caused population increases in more urbanized counties such as Dallas , Johnson , Linn , Polk , and Scott , at

6688-885: The tables below), one for the alternative depreciation system (ADS), and a class life. Taxpayers may be required to use ADS or otherwise may elect which of the three lives to use. Lives for personal property vary from 3 years to 20 years. Land improvements must be depreciated over 15 or 20 years. Other real property must be depreciated over 27.5 years for residential property, 39 years for business property, and 40 years under ADS. In addition, shorter lives are provided for certain property, including computers and peripheral equipment, certain high technology equipment, special purpose agricultural structures, and certain other items. MACRS also excluded certain property in regulated industries, as well as films, video tapes, and sound recordings, and certain other items. Also, leasehold improvements to realty are generally treated as real property under MACRS. Only

6776-468: The tax code the central focus of his second term domestic agenda. Working with Speaker of the House Tip O'Neill , a Democrat who also favored tax reform, Reagan overcame significant opposition from members of Congress in both parties to pass the Tax Reform Act of 1986. The top tax rate for individuals for tax year 1987 was lowered from 50% to 33%. Many lower level tax brackets were consolidated, and

6864-461: The time European explorers and traders visited Iowa, Native Americans were largely settled farmers with complex economic, social, and political systems. This transformation happened gradually. During the Archaic period (10,500 to 2,800 years ago), Native Americans adapted to local environments and ecosystems, slowly becoming more sedentary as populations increased. More than 3,000 years ago, during

6952-400: The upper income level of the bottom rate (married filing jointly) was increased from $ 5,720/year to $ 29,750/year. This package ultimately consolidated tax brackets from fifteen levels of income to four levels of income. The standard deduction , personal exemption , and earned income credit were also expanded, resulting in the removal of six million poor Americans from the income tax roll and

7040-558: Was 47. In 2008 , twelve people were killed by tornadoes in Iowa, making it the deadliest year since 1968 and also the second most tornadoes in a year with 105, matching the total from 2001. Iowa summers are known for heat and humidity, with daytime temperatures sometimes near 90 °F (32 °C) and occasionally exceeding 100 °F (38 °C). Average winters in the state have been known to drop well below freezing, even dropping below −18 °F (−28 °C). As of 2018, Iowa's all-time hottest temperature of 118 °F (48 °C)

7128-493: Was based on "useful life" calculations provided by the Treasury Department. ERTA set up the "accelerated cost recovery system" (ACRS). This set up a series of useful lives based on three years for technical equipment, five years for non-technical office equipment, ten years for industrial equipment, and fifteen years for real property. TRA86 lengthened these lives, and lengthened them further for taxpayers covered by

7216-439: Was deductible, including interest on home equity loans. The Act phased out many investment incentives for rental housing, through extending the depreciation period of rental property from 15–19 years to 27.5 years. It also discouraged real estate investing by eliminating the deduction for passive losses. To the extent that low-income people may be more likely to live in rental housing than in owner-occupied housing, this provision of

7304-598: Was fought just across the Des Moines River from Croton, Iowa , and shots from the battle landed in Iowa. Iowa sent large supplies of food to the armies and the eastern cities. Much of Iowa's support for the Union can be attributed to Samuel J. Kirkwood , its first wartime governor. Of a total population of 675,000, about 116,000 men were subjected to military duty. Iowa contributed proportionately more soldiers to Civil War military service than did any other state, north or south, sending more than 75,000 volunteers to

7392-406: Was passed by the 99th United States Congress and signed into law by President Ronald Reagan on October 22, 1986. The Tax Reform Act of 1986 was the top domestic priority of President Reagan's second term. The act lowered federal income tax rates, decreasing the number of tax brackets and reducing the top tax rate from 50 percent to 28 percent. The act also expanded the earned income tax credit ,

7480-705: Was popularly referred to as the second round of Reagan tax cuts (following the Economic Recovery Tax Act of 1981 ). The bill passed with majority support in both the House of Representatives and the Senate , receiving the votes of majorities among both congressional Republicans and Democrats , including Democratic Speaker of the House Tip O'Neill . After his victory in the 1984 presidential election , President Ronald Reagan made simplification of

7568-461: Was recorded at Keokuk on July 20, 1934, during a nationwide heat wave; as of 2014, the all-time lowest temperature of −47 °F (−44 °C) was recorded in Washta on January 12, 1912. Iowa has had a relatively smooth gradient of varying precipitation across the state; from 1961 to 1990, areas in the southeast of the state received an average of over 38 inches (97 cm) of rain annually, and

7656-403: Was refocused on families who own their homes in high tax states." 26 U.S.C.   § 469 (relating to limitations on deductions for passive activity losses and limitations on passive activity credits) removed many tax shelters , especially for real estate investments. This contributed to the end of the real estate boom of the early-to-mid 1980s, which in turn was the primary cause of

7744-522: Was used as an Indian Reservation for members of the Council of Three Fires . The first American settlers officially moved to Iowa in June 1833. Primarily, they were families from Ohio , Pennsylvania , New York , Indiana , Kentucky , and Virginia who settled along the western banks of the Mississippi River , founding the modern day cities of Dubuque and Bellevue near the site of Julien Dubuque's 1785–1810 lead mining operation. On July 4, 1838,

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