Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-08-2007, 01:00 AM
Junior Member
 
Join Date: Jan 2007
Posts: 5
What are IRS "Section 179 Depreciation limits for 2007"?

Dear TaxGuru,

What are the maximum section 179 dollar amount limits available for tax year 2007?

Also, please clarify what the rules are for qualifying to take this deduction. Are there any profit restrictions that apply when taking this election?

Thxs.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-30-2007, 04:00 PM
Junior Member
 
Join Date: Jul 2007
Posts: 12
for 2007, the limit is 112K. The deduction cannot create a net operating loss, but can be carried ahead. The property must be tangible, depreciable, personal property (1245 property) used in a trade or business, but NOT for the production of income.(rental real estate) It must be placed in service in the year the deduction is taken. If the property ceases to become business property, the deduction will be recaptured. The anual limit on qualifying expenditures is 450k. As far as profit, the 179 deduction is not "phased out." It acts like depreciation for recapture purposes upon disposition and is recaptured as ordinary income. You can split the 179 up any way you want.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 11-29-2007, 03:17 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Section 179 Depreciation Limits for 2007 for New Equipment

Section 179 allows taxpayers to write-off the cost of qualified property that is placed in service. To qualify for the section 179 deduction, your property must meet all the following requirements.

1. It must be eligible property, that is the property must be a qualified property.
2. It must be acquired for business use and used in that trade or business.
3. It must have been acquired by purchase( it must be new)
4.This deduction cannot result in net operating losses for the taxpayer. That is, the section 179 deduction cannot result in a net operating loss for the taxpayer.

The good news here is that the IRS has increased the depreciation allowance from $108,000 in 2006 to $125,000 for 2007.

The Investment limitation has also been increased from $430,000 in 2006 to $500,000 for 2007.

A detailed discussion on Section 179 qualified property and specific discussion on qualified property can be found by clicking the IRS link below.

Publication 946 (2006), How To Depreciate Property

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Last edited by TaxGuru : 12-01-2007 at 10:53 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning