Clarification - Expensing certain depreciable property in 2012 and 2013 

January 16:   Provisions in the American Taxpayer Relief Act of 2012 extended the rules for expensing certain depreciable property under section 179—rules that had been in effect for tax years beginning in 2010 and 2011 were extended by the Act to apply also for tax years beginning in 2012 and 2013.

These rules include:


  • An expense cap of $500,000
  • A $2 million phase-out threshold
  • The ability of taxpayers to apply $250,000 of the $500,000 expense cap to qualified real property

The amount under section 179 for expensing of certain depreciable property will revert to the $25,000 limit for tax years beginning after 2013.




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