Sec. 179 and timely filed tax return

[Gretel]

Maybe I was asleep or maybe things changed a long time ago. Anyway, I thought you need to take Sec. 179 on a timely filed tax return. New since a number of years is that you can amend a tax return to take Sec. 179, which is a different issue.

Neither TTB nor Pub. 17 says anything about timely filed.

I am about to take Sec. 179 on a tax return for 2007. Is that OK?

[ChEAr$]

Last I heard that change had not been rescinded. Go for it, Liebchen!

[New York Enrolled Agent]

Maybe I was asleep or maybe things changed a long time ago. Anyway, I thought you need to take Sec. 179 on a timely filed tax return. New since a number of years is that you can amend a tax return to take Sec. 179, which is a different issue.

Neither TTB nor Pub. 17 says anything about timely filed.

I am about to take Sec. 179 on a tax return for 2007. Is that OK?

A snip from Reg §1.179-5(a)

The election under section 179 and §1.179-1 to claim a section 179 expense deduction for section 179 property shall be made on the taxpayer's first income tax return for the taxable year to which the election applies (whether or not the return is timely) or on an amended return filed within the time prescribed by law (including extensions) for filing the return for such taxable year.

[Gretel]

Thank you so much guys. Just curious, before the option of claiming Sec. 179 on an amended return, the election needed to be made on a timely filed return, or did I just dream?

[JG EA]

I also can't prove it but I do remember the same thing. But that is the way they got you. If you had an expense that they said was an asset you were in trouble and lost the deduction.

[S T]

I thought so as well

But read NYEA's post carefully - seems it might not have to be on the original filed return, can also be on the "timely" filed amended return.

Also see TTB page - 9-14 right column

Section 179 Election / Revocation
Election. Make the election to claim a Section 179 deduction by
completing Part I, Form 4562, Depreciation and Amortization, and
filing the form with an original or amended tax return for the
year the property was placed in service.
• The Section 179 deduction may be claimed on a late original
return.
• If claiming a previously-omitted Section 179 deduction on an
amended return, specify the item of property to which the deduction
applies and the portion of the cost of each item taken
into account.
Revocation. A Section 179 deduction may be revoked or modified
without IRS approval by filing an amended return. Once revoked,
the election cannot be reinstated.

Sandy

[Jesse]

Thank you so much guys. Just curious, before the option of claiming Sec. 179 on an amended return, the election needed to be made on a timely filed return, or did I just dream?

You didn't dream it, I can't remember what year they changed this, but I do remember being relieved because, like JG eluded to, if an error was made and an asset was expensed, they had you. With the ability to amend for the Section 179 the option is open to take the expensed asset and amend for the Section 179 (unless you already maxed out on the Section 179).