Everything is up for grabs in terms of being taxed, as in this clip from Red Eye last night.
Archive for August 17th, 2011
Taxing the ugly?
Posted by taxguru on August 17, 2011
Posted in humor, SinTaxes, video | Comments Off on Taxing the ugly?
Sec. 179 assets have to be used in the USA
Posted by taxguru on August 17, 2011
Q:
Subject: Foreign assets and sect 179
I saw your informative web page concerning 179 property.
Where are foreign assets carved out from its application?
A:
From the IRC on TheTaxLibrary:
§ 179(d) Definitions and special rules
§ 179(d)(1) Section 179 propertyFor purposes of this section, the term “section 179 property” means property—§ 179(d)(1)(A) which is—§ 179(d)(1)(A)(ii) computer software (as defined in section 197 (e)(3)(B)) which is described in section 197 (e)(3)(A)(i), to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2013,
§ 50(b) Certain property not eligible
No credit shall be determined under this subpart with respect to—
§ 50(b)(1) Property used outside United States
Except as provided in subparagraph (B), no credit shall be determined under this subpart with respect to any property which is used predominantly outside the United States.
From Page 9-15 of TheTaxBook:
Other nonqualifying property:
• Air conditioning or heating units.
• Property used predominantly outside the United States, except property described in IRC Section 168(g)(4).
From Page 17 of IRS Publication 946:
Excepted Property
Even if the requirements explained earlier under What Property Qualifies are met, you cannot elect the section 179 deduction for the following property.· Certain property you lease to others (if you are a noncorporate lessor).
· Certain property used predominantly to furnish lodging or in connection with the furnishing of lodging.
· Air conditioning or heating units.
· Property used predominantly outside the United States, except property described in section 168(g)(4) of the Internal Revenue Code.
I hope this helps.
Kerry Kerstetter
Follow-Up:
Thank you VERY much. I blew right by section 50. I had seen Pub 946. I don't believe I have ever laid eyes on section 50.
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