Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for December 6th, 2007

Posted by taxguru on December 6, 2007

A Taxing Job I have already started warning people that the confusion surrounding the Insane AMT is going to make this coming tax season quite messy, especially if a last minute patch is finally passed by our rulers.  IRS tax forms have already been printed and we will have to make sure our tax software has been updated to supersede those forms that do it yourselfers will have to cope with.   

 

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Section 179 Limit for 2008

Posted by taxguru on December 6, 2007

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  Some, such as the CFS Quick Reference, still have outdated 2007 numbers ($112,000 instead of $125,000).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. 

 

 

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