IRS Revises Section 179 Expensing Amounts to Reflect HIRE Act Changes


On June 1, the IRS issued revised inflation-adjusted numbers to reflect the extension of the increased section 179 expensing amount for 2010 (Revenue Procedure 2010-24).

 

On March 18, 2010, the Hiring Incentives to Restore Employment Act of 2010, PL 111-147 (the HIRE Act), extended for 2010 the increased amounts that taxpayers can expense under IRC § 179. The HIRE Act extended the $250,000 limitation on the aggregate cost of section 179 property that can be treated as an expense. It also provided that the $250,000 amount is reduced by the amount by which the cost of section 179 property placed in service during 2010 exceeds $800,000.

 

Originally, the $250,000 and $800,000 amounts were $125,000 and $500,000, respectively (IRC § 179(b)). The Economic Stimulus Act of 2008, PL 110-185, increased the amounts to $250,000 and $800,000 for tax years beginning in 2008 and 2009. The HIRE Act extended those increased amounts for another year.

 

When the IRS issued its inflation-adjusted numbers for 2010 (Revenue Procedure 2009-50), the section 179 amounts had been scheduled to revert with the expiration of the Economic Stimulus Act changes. Revenue Procedure 2010-24 amends Revenue Procedure 2009-50 to take into account the HIRE Act’s extension of the larger amounts. The change is effective for tax years beginning in 2010.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out