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Wednesday, January 14 2015

Section 179 property is property that you acquire by purchase for use in the active conduct of your trade or business, and is one of the following.

  • Tangible personal property, including cellular telephones and similar telecommunications equipment.

  • Qualified section 179 real property.

  • Other tangible property (except buildings and their structural components) used as:

    1. An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services;

    2. A research facility used in connection with any of the activities in (1) above; or

    3. A facility used in connection with any of the activities in (1) above for the bulk storage of fungible commodities.

  • Single purpose agricultural (livestock) or horticultural structures.

  • Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum.

  • Off-the-shelf computer software placed in service before January 1, 2015.

Section 179 property does not include the following.

  • Property held for investment (section 212 property).

  • Property used mainly outside the United States (except for property described in section 168(g)(4)).

  • Property used mainly to furnish lodging or in connection with the furnishing of lodging (except as provided in section 50(b)(2)).

  • Property used by a tax-exempt organization (other than a section 521 farmers' cooperative) unless the property is used mainly in a taxable unrelated trade or business.

  • Property used by a governmental unit or foreign person or entity (except for property used under a lease with a term of less than 6 months).

  • Air conditioning or heating units

2014 Without changes: Deduction Rules Extension and Real Estate Expenditures.

  • The maximum Section 179 dedcution is scheduled to be only $25,000
  • The phase-out threshold is scheduled to fall to $200,000, and
  • The Section 179 deduction privilege for real estate expenditures is set to no longer be available.
Posted by: Sync Merchant Services AT 07:46 pm   |  Permalink   |  0 Comments  |  Email

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