Page 22 - Supplement to Income Tax TY2021

Updates, Additions, and Corrections to the Text of Your Income Tax 2021

Home office deduction example (pages 707–708). The No extension of higher Section 179 expensing for
filled-in sample Form 8829 (page 708) for Samuel empowerment zone assets (pages 732–733). The
Brown’s home office deduction is missing some entries. Taxpayer Certainty and Disaster Tax Relief Act of
Line 16, column (b) should be 10,000. Line 17, column 2020 terminates the increased expensing limit for
empowerment zone property, effective for property
(b) should be 4,000. Line 18, column (b), should be placed in service in tax years beginning after 2020. For
1,200. Line 21, column (b), should be 1,800. Line property placed in service in 2020, see the instructions
23, column (b), should be 17,000. Line 24 should be to Line 1 of Form 4562.
3,400. Line 30 should be 687. Three-year MACRS recovery period for racehorses (page

General business credits (pages 712–713). Numerous 734). The three-year recovery period for racehorses
business credits that expired at the end of 2020 were two years old or younger was extended through 2021
extended by the Taxpayer Certainty and Disaster Tax by the Taxpayer Certainty and Disaster Tax Relief Act.
Relief Act of 2020. Five-year extensions were provided IRS interest rate for first quarter of 2021 (pages 788,
for the work opportunity credit, the paid family and 792). For January-March 2021, the IRS interest rate
medical leave credit, and the new markets credit. A one- for individual taxpayer refunds and underpayments is
3%, the same as it has been since July 1, 2020. The 3%
year extension was provided for the Indian employment rate applicable in March 2021 also applies for purposes

credit, the biodiesel and renewable fuels credit, and the of figuring any estimated tax penalty due for the first
energy-efficient homes credit, among others. 15 days of April.

20 | Supplement to J.K. Lasser’s Your Income Tax 2021