Q:

Subject: Section 179

Hello Kerry,
I have been searching for the 2008 section 179 dollar limits and your website is the only place I have found an amount.  Would you be willing to share with me where you found this information?

Thank you,

A:

I have also been amazed at how few other professional tax reference services have updated their Section 179 info.  Some, such as the CFS Quick Reference, still have outdated 2007 numbers ($112,000 instead of $125,000).

I posted the new 2008 limit on my blog back in September based on the CCH inflation adjustment calculations.

In October, IRS confirmed all of the CCH figures in Rev Proc 2007-66  which they announced in this press release.

Here is the exact quote from page 14 of that Rev Proc:

.20 Election to Expense Certain Depreciable Assets. For taxable years beginning in 2008, under § 179(b)(1) the aggregate cost of any § 179 property a taxpayer may elect to treat as an expense can not exceed $128,000. Under § 179(b)(2) the $128,000 limitation is reduced (but not below zero) by the amount by which the cost of § 179 property placed in service during the 2008 taxable year exceeds $510,000.

I hope this helps.

Kerry Kerstetter

 Follow-up:

Thank you very much.  I actually did look at REV PROC 2007-66 but not in much detail since it seemed to look more for individuals and not for businesses. 

Labels: 179

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/06/2007 11:20:00 AM Send this post: