Section 179 Expensing

1
Section 179 Expensing

• Election to expense certain depreciable business
  assets

2
Sec. 179 Increased Amounts Extended

• TIPRA of 2005 extended 100,000 maximum
  expenditure limit for 2 more years
• Returns to 25,000 for tax years beginning after
  2009
• Inflation adjustments
• 2005 was 105,000
• 2006 is 108,000

3
Sec. 179 Increased Amounts Extended

• TIPRA also extended 400,000 investment limit
  for 2 years
• Returns to 200,000 for tax years beginning
  after 2009
• Inflation adjustment
• 2005 limit was 420,000
• 2006 limit is 430,000

4
Sec. 179 Income Limitation

• Deduction limited to taxpayers taxable income
  from active conduct of trade or business
• Taxable income from trade or business includes
• Sec. 1231 net gains

5
Sec. 179 Gulf Opportunity Zone Increases

• Expenditure limit increased to 200,000
• Investment limit increased to 1 million
• 1.03 million in 2006
• Placed in service on or after August 28, 2005 and
  before January 1, 2008