Section 179 Deduction Limit Increased for 2010 and 2011 Tax Years

The IRS has announced that the cost limitations for expensing property under Section 179 for the 2010 and 2011 tax years has been increased to $500,000. The aggregate cost of any section 179 property a taxpayer may elect to treat as an expense cannot exceed $500,000. This amount is reduced by the amount by which the cost of the property placed in service during the year exceeds $2,000,000. The amounts reflect statutory changes made by the Small Business Jobs Act.

Before this change, the Section 179 expense limits for 2010 and 2011 were $134,000 and $25,000, respectively. The total cost limits of property placed in service before the change for 2010 and 2011 were $530,000 and $200,000 respectively.

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This entry was posted on November 30, 2010 at 4:00 pm and is filed under Section 179, Small Business, Small Business Jobs Act, Taxes. You can subscribe via RSS 2.0 feed to this post's comments. Both comments and pings are currently closed.

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