Election to expense certain depreciable business assets Section 179 Expensing Election to expense certain depreciable business assets

Sec. 179 Increased Amounts Extended TIPRA of 2005 extended $100,000 maximum expenditure limit for 2 more years Returns to $25,000 for tax years beginning after 2009 Inflation adjustments 2005 was $105,000 2006 is $108,000 12/29/2018 W L Hoover, Purdue University

Sec. 179 Increased Amounts Extended TIPRA also extended $400,000 investment limit for 2 years Returns to $200,000 for tax years beginning after 2009 Inflation adjustment 2005 limit was $420,000 2006 limit is $430,000 12/29/2018 W L Hoover, Purdue University

W L Hoover, Purdue University Sec. 179 Income Limitation Deduction limited to taxpayer’s taxable income from active conduct of trade or business Taxable income from trade or business includes Sec. 1231 net gains 12/29/2018 W L Hoover, Purdue University

Sec. 179 Gulf Opportunity Zone Increases Expenditure limit increased to $200,000 Investment limit increased to $1 million $1.03 million in 2006 Placed in service on or after August 28, 2005 and before January 1, 2008 12/29/2018 W L Hoover, Purdue University