Tax News You Can Use . . .
Code Section 179 expensing limits remain the same.....for now.
Taxpayers can elect to deduct the cost of qualified property placed in service in any given tax year under Code Section 179. Qualified property is tangible, depreciable personal property that is actively used in a trade or business.
In 2010, as in 2008 and 2009, taxpayers will be able to expense up to $250,000 of qualified property placed in service in 2010 under Code section 179. The $250,000 amount is phased out (reduced) if the total cost of the qualifying property placed in service during 2010 exceeds $800,000. Once the cost of the qualified property exceeds $1,050,000 the deduction phases out completely. The amounts for the deduction and phase out are not adjusted for inflation.
As the law stands now, for years beginning after 2010, the maximum expense amount under Code Section 179 will be $25,000 with the phase out beginning at $200,000.
If you have any questions regarding the expense amounts allowed under Code Section 179, please call us at any time.
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