I was actually just reading in the news the other day about how the Sec 179 deduction has been extended for 2 years with retroactive application for 2014. Back to the 500,000 and 2mil. I wonder what this means for the exams coming up?
The measure has to also be approved by the Senate (unchanged) and then signed by the President.
Currently the House has approved a permanent restoration of Section 179 to $500,000, whereas there is support for a 2 year extension in the Senate. Since in the Senate, the Section 179 measure is being lumped in as part of a large tax extenders package, it is predicted that the Senate is unlikely to even vote on this subject until after the midterm elections.
Not to mention that the Obama administration has promised to veto the bill in its current form.
It looks like for 2014 sec. 179 deduction is $25,000 phasing out dollar-for-dollar after $200,000 of purchases and limited to the taxable income of the taxpayer from active trade or business. Plus the 50% additional first-year bonus depreciation is now eliminated for 2014.
So for 2012 and 2013 it is still $500,000 phasing out dollar-for-dollar after $2,000,000 of purchases also limited by the taxable income of the taxpayer. Then you can take 50% first-year bonus depreciation (after section 179 deduction) which is eliminated for 2014 tax year.
Thank you Jeff. Is there a thread for 2014 changes in the tax law (for those taking the exam after May 31st 2014)?
Also in your audio course for 2014 are the changes reflected? Because I listed to the individual taxation lecture and you still mention sec. 179 being $500k and the limit of $2,000,000. Do you mention the changes in a separate audio?
Great! Looking forward to it! Just a quick question in advance: are there a lot of changes in the audio? It is just that I listened to it so many time to get it into my brain….
I understand what you are saying for 2014 questions. But if a question started something like… in 2013 xyz company took a section 179 deduction…wouldn't the 2013 limits apply. Or I'm hoping they wouldn't give an available answer choice both possible ways if it was multiple choice question.
Hi I am going into Reg in 2 days Jan 8th. Is it still 25k/200k for exam purposes? Just want to make sure. Thanks in advance.
Mario Marcel, CPA
FAR. Feb 2014 76
REG. Jan 2015 79 half way there!!
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