Section 179 Property

Section 179 Property

Real estate or personal property purchased specifically for investment or business purposes in the United States. Expenses on Section 179 property are tax deductible up to a certain level, which changes each year. However, one must declare that such property should be given Section 179 tax treatment by filing Form 4562.
References in periodicals archive ?
For tax years 2015 and thereafter, a taxpayer may immediately expense up to $25,000 of Section 179 property annually, with a dollar-for-dollar phase-out of the maximum deductible amount for purchases in excess of $200,000.
Under IRC section 179, a taxpayer may elect to immediately write off any IRC section 179 property as an expense in the taxable year in which the property is placed in service.
Section 179 property is depreciable personal property when purchased for use in the active conduct of a trade or business.
It is important to note, the $250,000 amount provided under the new law is reduced if the cost of all section 179 property purchased and placed in service by the business during the tax year exceeds $800,000.
This limit is reduced by the amount by which the cost of Section 179 property placed in service in the tax year exceeds $800,000.
Under the 2008 Economic Stimulus Act, a qualifying business can expense up to $250,000 of section 179 property purchased by the taxpayer in a tax year beginning in 2008.
Under our present tax laws, retailers may choose to treat expenditures for qualifying property, called Section 179 property, as an immediately deductible expense rather than as a capital expenditure.
Section 179 property does not include any property described in Section 50(b) or air conditioning or heating units.
Businesses adding more than $200,000 of IRC section 179 property during the year must reduce the maximum election dollar for dollar above $200,000.
Also extended would be increased expensing limitations and treatment of certain real property as Section 179 property.
In addition, if a company qualifies and if large investments were made in IRC section 179 property during these earlier years, it should consider filing an amended return.
Extension of increased expensing limitations and treatment of certain real property as section 179 property.