IRS corrects Section 179 inflation adjusted amounts

The IRS has issued Revenue Procedure 2007-60 which corrects inflation adjusted amounts applying to taxpayers who elect to expense certain depreciable assets under Section 179 of the Internal Revenue Code.

Previous law entitled taxpayers to take a current year expense deduction for the cost of Section 179 property up to $100,000, and that $100,000 had to be reduced (but not below zero) by the amount by which the cost of Section 179 property acquired in the current year exceeded $400,000. These amounts applied to tax years 2003 through 2009 and were subject to annual inflation adjustments.

With the passage of the Small Business and Work Opportunity Tax Act of 2007, the $100,000 amount is changed to $125,000, and the $400,000 amount is changed to $500,000 for tax years 2007 through 2010, with annual inflation adjustments.

Rev. Proc. 2007-60 is effective for tax years beginning in 2007. Rev. Proc. 2006-53 which previously set inflation adjustments relating to Section 179 has been superseded.

You may like these other stories...

Renaissance avoided more than $6 billion tax, report saysThe Senate Permanent Subcommittee on Investigations said on Monday that a Renaissance Technologies LLC hedge fund’s investors probably avoided more than $6...
A new Gallup survey found that 58 percent of smokers in the United States see increased state and federal taxes on cigarettes as an act of unjust discrimination, while 39 percent believe the tax hikes are justified.The...
Liberal groups object to bill barring taxes on Internet accessThe Internet Tax Freedom Act hasn’t been a controversial bill. In fact, it’s so popular that senators are seeking to pair it up with a far more...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.